House prices are rising at their fastest pace since the 2003 boom, thanks to the FHOG boost and the Reserve Bank of Australia’s (RBA) decision to keep interest rates on hold at 3 per cent.
According to the Australian Bureau of Statistics (ABS), the housing market is reversing some of the collapse in household wealth caused by the global financial crisis.
Data released by the ABS yesterday showed house prices rose by 4.2 per cent in the June quarter.
Melbourne and Sydney recorded the biggest increases in house prices for the quarter, rising 5.2 and 4.9 per cent respectively.
Darwin recorded the smallest increase in house prices for the quarter (2.4 per cent), but the largest increase for the year to June 2009 at 11 per cent.
House prices in Perth fell 3.7 per cent throughout the year to June 2009.
Private providers such as Australian property Monitors and Rismark show house prices are rising at a rate of about 1 percentage point a month.