Property prices continue to rise across Australia’s combined capital city housing markets, however, the pace of growth has reduced when compared with previous months.
Over the 12 months to November 2016, property values soared 7.5% higher. Apart from Adelaide, Hobart, and Perth, every capital city recorded a rise in dwelling values over the past three months, with the Canberra housing market recording the largest increase in values after a 5.6% quarterly rise.
This data would suggest the property market remains alive and well. Added to that, auction clearance rates have been tracking in the mid to high 70% range across the combined capital city markets, with the largest auction markets of Melbourne and Sydney generally showing a higher rate of clearance.
In fact, throughout September and October, over the past two months, clearance rates across Sydney have dipped below 80% only once. A year ago, auction clearance rates were consistently trending around the mid 60% range.
It is clear from the data that there is currently a lot of activity and urgency in the property market. With many analysts now expecting home loan rates to increase over the coming months, it is likely the heat will stay in the property market as borrowers try to take advantage of the last of the historically low rate environment.
Tim Lawless, CoreLogic RP Data