PHOTO: The Great Australian Property Boom
Key points:
- Home prices rose 1.1 per cent in January, and 22.4 per cent over the past year
- Brisbane had the biggest capital-city price rise over the month (2.3pc) and year (29.2pc)
- Regional prices rose more than twice as fast as capital cities
CoreLogic’s latest home value data show prices jumped by 22.4 per cent over the past year, the biggest increase since June 1989.
However, CoreLogic’s research director, Tim Lawless, said the biggest part of that price increase had occurred in the first part of 2021.
“The early indication is that housing markets are starting 2022 with a similar trend to what we saw through late last year,” he said.
“Values are still broadly rising, but nowhere near as fast as they were in early 2021.”
However, the 1.1 per cent increase in January, if maintained throughout the year, would still see a 13 per cent-plus increase in prices annually.
‘Pretty disheartening’ for first home buyers
Mr Lawless said the future direction of the market would be in large part dependent on the selling intentions of current owners.
Melbourne is the only capital city where sales listings are currently (slightly) above their five-year average, while Sydney’s are 12 per cent below.
However, the number of properties for sale in the other capital cities is well below typical levels, only about half in Brisbane and Adelaide.
“The trends in advertised supply levels go a long way towards explaining the performance of housing values,” Mr Lawless explained.
“The situation in Adelaide and Brisbane is very different; supply remains tight and buyer competition is a key factor supporting the upwards pressure on prices.”
Brisbane and Adelaide were the clear stand-out capital cities for price increases over January (2.3 and 2.2 per cent respectively), with Brisbane also leading housing inflation over the past year (29.2 per cent).
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