The house prices in Sydney and Melbourne have shot up again during November 2019 according to CoreLogic figures.
House Price Changes For November 2019
After a large increase in October 2019, the gains continued for the Australian property market according to the CoreLogic National Home Value Index.
The fifth consecutive monthly increase saw national property prices rise by 1.7%, which is the largest monthly gain in the national index since 2004.
The values of house prices are not quite back at their all-time highs according to CoreLogic. The national dwelling value index is still 4.1% below its 2017 peak.
Sydney Property Prices
Sydney house prices jumped 2.7% during the month, with 6.2% growth over the quarter to November 2019. The annual price change is now registering a gain of 1.6%.
Melbourne Property Prices
Melbourne’s house prices didn’t perform quite as strongly with a gain of 2.2% over the month and the city showed a gain of 6.4% in the three months to November 2019. Melbourne’s annual price change is now sitting at 2.2%.
Brisbane Property Prices
Brisbane’s November 2019 performance was a gain of 0.8% and quarterly increase of 1.8%. But, the annual change is still a decline of 0.5%.
Adelaide Property Prices
The South Australian capital registered house price growth of 0.5% with quarterly growth of 0.9%. The annual decline is also still a negative 0.5%.
Perth Property Prices
Even Perth is getting in on the price gain action. November 2019 saw house prices rise by 0.4%. But the quarter and annual declines are still 0.9% and 7.7% respectively.
Hobart Property Prices
The Tasmanian capital has returned to fast growth, in November it saw prices go up 2.3% and over the quarter prices went up 2.8%. It’s still showing the strong house price growth of all cities over the past year of 4.2%.
Darwin Property Prices
The Northern Territory capital can’t seem to escape the downward trend, house prices dropped 1.2% during the month. Darwin property is down 1.1% over the three months and it’s in the red by 10.9% over the past 12 months.
Canberra Property Prices
The country’s capital is also seeing quite fast growth. House price growth for the month was 1.6% and for the quarter was 3.2%. The past year has been growth of 3% for Canberra.
CoreLogic Comments
CoreLogic Head of Research Tim Lawless said: “The synergy of a 75 basis points rate cut from the Reserve Bank, a loosening in loan serviceability policy from APRA, and the removal of uncertainty around taxation reform following the federal election outcome, are central to this recovery. ”
“Additionally, we’re seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up. There’s also the prospect that interest rates are likely to fall further over the coming months and an improvement in housing affordability following the recent downturn are other factors supporting a lift in values.”
Share Price Reaction
Property related businesses have seen share prices rise. The Commonwealth Bank (ASX: CBA) share price is up 0.7%, the Westpac (ASX: WBC) share price is up 0.7%, the REA Group (ASX: REA) share price is up 1.3% and the Domain (ASX: DHG).
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