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PHOTO: First home buyers are being pushed out as affordability continues to worsen. Picture: Gaye Gerard/NCA News Wire Source: News Corp Australia

Australia’s property boom shows no sign of slowing down as house values continued to surge with 2.2 per cent increase across the nation in May, found CoreLogic.

Hobart saw the biggest increase with values growing by 3.2 per cent as an average home is now worth $574,543.

Sydney came in a close second with a 3 per cent surge taking the median house value in the city to $970,355. According to CoreLogic figures released today, this means the average house in the Harbour City is now going for $1.1 million with units at $800,000.

Nationally, the 2.2 per cent surge means the median value of homes across Australia has now hit $634,355 – with predictions it will continue to rise this year and into 2022.

CoreLogic’s research director, Tim Lawless, said low interest rates and improving economic conditions were driving strong demand for housing.

“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 upwards pressure on housing prices,” he said.

READ MORE VIA NEWS.COM.AU