According to the latest data from CoreLogic, house prices are rising at their fastest pace in 30 years in some markets. Dwelling prices rose in all eight capital cities in November based on sales figures from November, although prices for regional Australia also grew.
It covers 2.7% in Sydney, 2.3% in Melbourne, and 0.8% in Brisbane and the Gold Coast, where prices are now close to their peak in April 2018. In regional Australia, prices are also rising generally, with the house price index rising by 0.5% in November and 1.1% in the last quarter.
Regional market home value indices rose in NSW, Victoria, Queensland, Tasmania, and South Australia in November. The 2.7% increase in prices in Sydney was the highest since October 1988, when prices rose by 3.5% and beat May 2015, when prices rose by 2.6%. Perth housing units had their first monthly price increase of 0.4 percent in two years, while Adelaide in November rose 0.5 percent, CoreLogic reports.
According to Tim Lawless who heads up CoreLogic Research, high gains in housing values are driven by several factors. “The synergy of a 75 basis points rate cut from the Reserve Bank, a loosening in loan broker serviceability policy from APRA, and the removal of uncertainty around taxation reform following the federal election outcome, are central to this recovery.
“Additionally, we’re seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up. There’s also the prospect that interest rates are likely to fall further over the coming months and an improvement in housing affordability following the recent downturn are other factors supporting a lift in values.”