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- Australian house prices have continued posting impressive growth over May, with values rising 2.2 per cent, according to CoreLogic
- Growth conditions remained broad-based geographically and across housing types, according to CoreLogic research director Tim Lawless, who noted this is a rarity in the diverse Australian marketplace
- The combined capital city index rose 2.3 per cent in May compared with a two per cent rise across the combined regional areas
- Across the capital cities, the monthly change in dwelling values ranged from a 1.1 per cent rise in Perth to a 3.2 per cent jump in Hobart
- In the non-capital city regions, conditions were more diverse, with regional NSW leading monthly gains (2.5 per cent), while values in regional WA had the weakest result (-0.1 per cent)
Australian house prices have continued posting impressive growth over May, with values rising 2.2 per cent, according to CoreLogic.
This increase is higher than the 1.8 per cent growth recorded in April but weaker than the 32-year high recorded in March when values surged 2.8 per cent.
Growth conditions remained broad-based geographically and across housing types, according to CoreLogic research director Tim Lawless, who noted this is a rarity in the diverse Australian marketplace.
“Values were up by more than 1 per cent across every capital city over the month, with both house and unit values lifting across the board,” he said.
“Of the 334 SA3 subregions analysed by CoreLogic, 97 per cent have recorded a lift in housing values over the past three months. Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets.”
For the second time in three months, growth conditions in capital city home values outpaced the regional markets.
The combined capital city index rose 2.3 per cent in May compared with a two per cent rise across the combined regional areas.
Across the capital cities, the monthly change in dwelling values ranged from a 1.1 per cent rise in Perth to a 3.2 per cent jump in Hobart.
In the non-capital city regions, conditions were more diverse, with regional NSW leading monthly gains (2.5 per cent), while values in regional WA had the weakest result (-0.1 per cent).
Mr Lawless said the combination of improving economic conditions and low-interest rates is continuing to support consumer confidence which, in turn, has created strong demand for housing.
“At the same time, advertised supply remains well below average,” he said.
“This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.”
Despite the consistently strong headline results, the underlying trends have shifted over the past year, according to Lawless.
“The most expensive end of the market is now driving the highest rate of price appreciation across most of the capital cities, whereas early in the growth cycle it was the most affordable end of the market that was the strongest,” he said.
Mr Lawless said it was the smaller capital cities that had led the housing market out of the COVID slump, but now Sydney had recorded the largest capital gain over the past three months with values up 9.3 per cent.
Fresh listings added to the housing market have picked up over recent months, with the number of new listings tracking 15 per cent above the five-year average.
Despite the increase in newly advertised residential properties, sales activity has also increased. CoreLogic estimates sales activity over the three months to May was tracking about 37 per cent higher than the five-year average.
Low stock and high demand are keeping auction clearance rates high and private treaty metrics tight. Auction clearance rates have held in the mid to high 70 per cent range throughout May, above the decade average.
Median time on the market remains around its record low of 25 days, while vendor discounting rates are also around record lows, according to CoreLogic.
