National property values have jumped by almost 2 per cent in August in the largest monthly movement since January 2005.
According to figures from RP Data, Australia’s housing recovery solidified during the month of August with strong capital gains registered across the country despite evidence of fading first home buyer numbers.
The company’s research director, Tim Lawless, said the August results were indicative of very high levels of buyer confidence combined with low levels of listings.
“These buoyant conditions sit in striking contrast to the same time last year when values were falling, less than half of the auctions held cleared and sales volumes were at rock bottom. We are now seeing home values rising at a solid rate, almost 80 per cent of auctions are clearing, and sales volumes have bounced back significantly”, he said.
Australian home values have now risen 3.8 per cent past their February 2008 peak.
This rebound followed peak-to-trough falls in national home values of just 3.8 per cent in 2008, which compares exceptionally well with the 15 per cent and 30 per cent house price declines seen in the UK and US, respectively.