Australian home values have enjoyed a monthly increase for the first time in almost two years

PHOTO: The rise in Sydney home values is propelling the market forward. Source: Content Portal

National dwelling values have made their first move north in almost two years.

The increase of 0.8 per cent over the month of August is the first overall gain since October 2017 and the largest monthly increase since April of the same year, according to CoreLogic’s latest Hedonic Home Value Index.

The national median dwelling value was recorded as $521,000, or $597,072 across the combined capital cities.

“Australia’s housing market recovery gathered some pace in August,” said CoreLogic research director, Tim Lawless.

“The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low,” he added.

“It’s likely that buyer demand and confidence is responding to the positive effect of a stable Federal government as well as lower interest rates, tax cuts and a subtle easing on credit policy.”

Mr Lawless said the recovery trend is being propelled by stronger conditions in Sydney and Melbourne.