Housing values rose by 1.1% across Australia in January, and the data shows regions are outpacing the capitals.
CoreLogic's national measure of housing values revealed five of the eight capital cities recorded a 'modest' uptick in the monthly growth rate.
This 'surprising' result saw Melbourne housing values rise, despite recording a slight decline in the previous month.
Regional markets have had a 'substantially' stronger monthly result, with the combined regionals index up 1.8% over the month and 6.3% over the rolling quarter.
Comparatively, capital city housing values rose 0.8% and 2.6% respectively over the same period.
CoreLogic's Research Director Tim Lawless said housing stock is thinly traded in January, and that it will be more important to pay attention to these trends when transactional activity picks up.
"As the volume of home sales moves out of seasonal lows, we should get a firmer reading on how 2022 is shaping up," Mr Lawless said.
"The early indication is that housing markets are starting 2022 with a similar trend to what we saw through late last year. Values are still broadly rising, but nowhere near as fast as they were in early 2021."
Mr Lawless said that growth rate softening was influenced by a number of factors.
"[Factors include] less government stimulus, worsening affordability, rising fixed term mortgage rates and, more recently, a slight tightening in credit conditions, and a surge in new listings through the final quarter of last year," he said.
Highest dwelling value growth since 1989
The annual change in national dwelling values reached a new cyclical high in January, up by 22.4% over the year to date.
This is the highest annual rate of growth recorded since June 1989 according to CoreLogic's figures.
In dollar terms, the average Australian home is now worth an extra $131,236.
Brisbane recorded the biggest jump in housing values, up by 29.2% or $159,763 over the past year.
Over the past month, Brisbane housing values steamed ahead, rising by 2.3%; Adelaide housing values rose by a close 2.2%; Hobart housing values rose by 1.2%.
Slower growth was recorded in Melbourne (0.2%), Darwin (0.5%), Sydney (0.6%), and Perth (0.6%) in January.
Hot rental market still elevated, but cooling down
Since its peak in the March quarter of 2021 (3.2%), the rental index reduced to a quarterly rate of growth of 2% in January.
Annualised rent prices rose by 9%, slightly down from the peak of 9.4% in November last year.
That said, CoreLogic data released Thursday also showed 2021 saw the strongest annual growth rate since 2007.
Annual growth in Perth peaked at 16.9% in June 2021, slowing to 8.8% in January 2022.
Also notably Darwin's rental growth peaked at 22.3% in August 2021, now sitting at 11.7%.
Brisbane and Canberra are now recording the fastest rent rises across the capitals, with rents up 2.3% in both cities over the three months ending January.
This 'stronger' rental growth reflects the imbalance between rental supply and demand, particularly for houses, according to CoreLogic.
The gross rental yield nationally fell to 3.21% - down from 3.69% the year prior - despite rents rising at an above-average pace.
This is because dwelling values have risen more substantially, pushing yields in most cities downward.
"Property price growth strongest since 1989" was originally published on Savings.com.au and was republished with permission.