The national housing market has recorded its best results in over three years with most capitals recording house price growth over the June quarter, according to the Australian Property Monitors’ Quarterly Housing Report.
National median house prices rose strongly by +2.8 per cent over the quarter. This is the third consecutive quarterly rise in the national house price, a result not seen since March 2010.
National unit prices also rose solidly over the quarter, increasing by two per cent.
All the capitals, except Darwin and Hobart, recorded significant house price growth over the June quarter. Prices in Sydney, Melbourne and Perth increased by three times the inflation rate over the 2013 financial year.
Sydney median house prices increased by 2.7 per cent to $690,064, with unit prices also rising strongly by 2.4 per cent to $419,000. Both the results are all-time highs for the city.
Melbourne recorded the strongest results of all the capitals, with houses up five per cent and units up 3.7 per cent.
Senior economist for Australian Property Monitors Dr Andrew Wilson said the rises were due to the lowest interest rates in decades, rising confidence and continued generally solid economic performance.
“Buyer activity in most capital city housing markets is now charging towards record levels, with the fastest price growth since the government-stimulated house price boom of 2009 and 2010,” he said.
“The results in Sydney and Melbourne are not surprising and are in line with previous forecasts and analysis, particularly with reference to price growth correlation with auction clearance rate data, which has proven to be an accurate guide to the general level of house and unit price growth in those markets.”
Dr Wilson said buyer activity was set to accelerate through the remainder of this year, with market momentum and prices on the rise.
“The patchiness that has characterised market activity over the past year is diminishing as expected, with most capital city markets and market segments at or near record levels and rising,” he said.