Source: Tim Lawless, CoreLogic RP Data
The annual rate of home value appreciation continues to surge higher across Australia with dwelling values up 11.1% over the 12 months to August.
Sydney continues to be the standout performer, with the capital city recording growth of 18.4% over the last year. But while growth conditions in Sydney (and to a slightly lesser extent Melbourne) have been extreme, the remaining capital cities continue to see milder rates of growth. The third highest capital gain across the nation’s capitals was recorded in Brisbane, where values were 3.9% higher over the past 12 months. At the other end of the spectrum, Darwin values have fallen by 5.3%.
One of the factors driving values higher in the largest cities is the short supply of homes for sale. In Sydney there are approximately 18,150 property listings, which is below average.
Conversely, in those cities where the housing market is weakening, listing numbers have shown a consistent rise.
With listing numbers low and market demand high in Sydney, buyers have been faced with some urgency in their decision making, which is driving prices higher.
The cumulative effect of tighter lending conditions, more expensive mortgage rates for investors, and affordability constraints, should dampen the exuberance we have seen across the Sydney market.