There is more pressure on the new Reserve Bank of Australia governor to lift interest rates as new data today showed house prices are continuing to rise.
CoreLogic’s national Home Value Index (HVI) recorded a 0.8 per cent rise in September, headed by Perth, Brisbane and Adelaide, where housing supply is stuck at about 40 per cent under the five-year average.
RBA governor Michele Bullock, who took over from Philip Lowe earlier this month, will hold her first board meeting tomorrow. The RBA will have to balance rising home prices with cost-of-living pressures impacting households and businesses.
The median price price of a home is now $1,110,660 in Sydney, $776,716 in Melbourne and $691,591 in Adelaide.
Since January, home values have recovered by 6.6 per cent and are heading for a new record high by late November, CoreLogic said.
“We have already seen dwelling values reach new record highs in Perth and Adelaide. Brisbane looks set to reach a new record high in October, with home values currently only 0.6 per cent below their previous peak,” Tim Lawless, the property analysis company’s head of research said.
The Sydney suburbs where first home buyers are flocking
“Hobart and Canberra have the furthest to go before staging a nominal recovery, with dwelling values remaining 12.4 per cent and 7 per cent below their cyclical highs from last year.”
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The research found lower and middle value properties were largely driving the rise in house prices nationally.
After leading the recovery cycle, there are signs the premium housing sector is losing momentum.
“This shift is partly attributable to the lower value capitals such as Perth and Adelaide recording a faster rate of growth, however even in these cities it is the lower quartile that has outperformed,” Lawless said.
In the more expensive cities, Sydney and Melbourne, the broad middle of the market is now recording the highest growth rate.
The combined regional housing markets recorded a 1.1 per cent rise in dwelling values through the September quarter which was less than half the gain across the combined capital city market.
