Australian house prices rose 1.3 per cent in November and are now 22.2 per cent higher than a year ago, according to CoreLogic’s latest national home value index.
While price rises have now continued for 14 months in a row, the monthly increase was the smallest recorded by CoreLogic since a rise of 0.9 per cent in January.
“Virtually every factor that has driven housing values higher has lost some potency over recent months,” said CoreLogic research director Tim Lawless.
“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”
In the capital cities, Brisbane saw the greatest growth during the month with a rise of 2.9 per cent, the highest since October 2003 and equivalent to a rise of approximately $18,500 based on median property values.
Prices in Adelaide rose 2.5 per cent in November, the highest since February 1993 and equivalent to an increase of about $13,500.
“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from COVID lockdowns and a positive rate of interstate migration is fueling housing demand,” explained Mr Lawless.
“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”
Monthly growth of 0.9 per cent was recorded in Sydney and 0.6 per cent in Melbourne.
Dwelling values across regional areas rose 2.2 per cent, double the growth seen in the combined capital cities.
On an annual basis, prices have risen 25.8 per cent in Sydney, 25.1 per cent in Brisbane and 16.3 per cent in Melbourne.
CoreLogic said that the difference between median values for houses and units in capital cities had climbed to 37.9 per cent, the biggest difference it has ever recorded.
“With such a large value gap between the broad housing types, it’s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a house,” said Mr Lawless.
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Article courtesy of Nestegg