Housing prices across the country re-accelerated through May as a combination of ultra-low interest rates, strong consumer confidence and low supply drove prices to their highest levels in every capital city.
Figures released by CoreLogic on Tuesday showed values in Perth increased by 1.1 per cent, with the median house price in Perth hitting $510,000.
House price growth re-accelerated through May led by strong gains in every capital city.Credit:Jessica Shapiro
In Sydney house prices jumped another 3.5 per cent last month to be 11 per cent up over the quarter.
Since the start of the year, Sydney’s median house value has climbed by 15.1 per cent, taking it to $1.186 million. Unit values in Sydney lifted by 1.8 per cent in May to be 5.3 per cent up over the past quarter and by 6.5 per cent since the start of the year.
Melbourne’s house values jumped by 2.2 per cent to be 6.3 per cent better over the quarter. The median house price has now gone through $900,000. Unit values in Melbourne lifted by 0.8 per cent to be 4.9 per cent up over the past year.
Values in Hobart increased by 2.2 per cent in May, by 2.1 per cent in Adelaide, by 2.7 per cent in Hobart, by 1.5 per cent in Darwin and by 2.1 per cent in Canberra.
Hobart, Darwin and Canberra house values have all increased by more than 11 per cent this year alone.
Over the past year, the strongest market is Darwin with house values there up by 21.1 per cent. The second strongest is Canberra with values up by 17.7 per cent.
CoreLogic’s research director Tim Lawless said a perfect storm of influences was driving up prices.
“The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn, has created persistently strong demand for housing,” he said.
“At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upward pressure on housing prices.”
CoreLogic’s Tim Lawless says low supply, strong consumer confidence and low interest rates are helping drive up prices.Credit:Janie Barrett
Outside of the capitals, dwelling prices across regional NSW increased by 2.5 per cent in May while they lifted by 1.7 per cent in regional Victoria and by 1.9 per cent in both regional Queensland and regional Tasmania.
Mr Lawless said housing values over the past three months had climbed in 97 per cent of the nation’s housing markets.
“Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets,” he said.
The strong market has resulted in the number of days a property remains up for sale has fallen to an all time low of less than 30 days. The median discount offered by sellers has also dropped to its smallest level on record.
A continuing issue is the low number of properties on the market.
Mr Lawless said the total number of properties up for sale is about 24 per cent below its long term average. The only city where listings are higher than their long term average is Melbourne.
In a sign of how the market is changing, Mr Lawless said the top quarter of the market is now driving the biggest increases in prices.
The upper quartile of the market lifted by 9.2 per cent in the quarter compared to 4.2 per cent for the cheapest quartile.
Most of this is going on in Sydney and Melbourne. In Sydney, the top quartile is up by 12 per cent over the past three months while the bottom is up by 5.2 per cent while in Melbourne the top is up by 6.5 per cent while the cheapest is up by 3.5 per cent.
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