Australian house prices continue to rise, recording the highest annual growth rate since June 1989, with three capitals now tipping $ 1 million.
CoreLogic data released on Tuesday showed that home values had risen 22.4 percent over the past 12 months.
However, the trend of declining growth continues, with prices rising by 1.1 per cent. last month against 1 per cent. In December.
CommSec senior economist Ryan Felsman said the broader slowdown in housing activity over the past few months was largely expected, with real estate markets generally “closing” as real estate agents and home buyers focused on their summer vacations in January.
“And the increase in the case of Omicron virus variants, particularly in Sydney and Melbourne, has likely weighed on property sales and prices at the turn of the year,” Felsman said.
CoreLogic research director Tim Lawless said a more solid reading on how 2022 was shaping up should emerge as the volume of home sales shifted out of seasonal lows.
“The early indication is that housing markets will start 2022 with a trend similar to the one we saw at the end of last year. Values are still rising largely, but not nearly as fast as they were in early 2021. , “said Lawless.
“A softening of growth conditions has been affected by less government stimulus, deteriorating affordability, rising mortgage rates and recently a slight tightening of credit terms and a rise in new IPOs through the last quarter of last year.”
The typical Australian home was now worth $ 131,236 more than it was a year ago, the group said.
Brisbane came out ahead during the year, with home values rising 29.2 percent, meaning the average property costs $ 159,763 more than it did the year before.
Melbourne’s median house value exceeded $ 1 million. for the first time last month, while Canberra’s median house value for the second month in a row overshadowed the striking level.
In Sydney, Australia’s most expensive real estate market, the average house value rose to just under $ 1.39 million.
Commonwealth Bank economists expect annual house price growth to slow to around 7 per cent by 2022, although a 9 per cent increase is expected in Brisbane.
House prices in Perth are expected to lag behind the broader market, with only a 3 per cent increase.
Apartments (up 9 per cent) are tipped to do better than detached houses (up 6 per cent).
“In the short term, home buyers, investors and sellers should be on the lookout for signs of weaknesses in the real estate market, including weaker auction approval rates, lifting announced inventories, extending the number of days a home is advertised on the market and increased levels of home price discounts,” he said. Mr. Felsman.
“Of course, the full reopening of Australia’s international border could still affect the demand for Australian homes, while a potential turnaround of the capital to regional Australian migration – as workers appear to return to city offices in either a part-time or full-time capacity – is a other interesting dynamics. “
Also on Tuesday, the latest data released by the Australian Bureau of Statistics showed that new home loan commitments rose 4.4 per cent to a record high of £ 32.8 billion. USD, seasonally adjusted, in December.
“Investor lending has seen growth over the last 14 months, accounting for about a third of the value of new mortgage lending,” said ABS acting chief financial officer Amanda Seneviratne.
First-time home buyers ran out of mortgages in Western Australia, rising 11.8 per cent.
Perth remains the second most affordable real estate market with an average home value (houses and apartments) of $ 531,243, while Darwin remains the cheapest at $ 496,476.