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Tech & Science Sydney, Melbourne house price surge accelerated in November

01:25  02 december  2019
01:25  02 december  2019 Source:   msn.com

Sydney and Melbourne house values surge on lower interest rates

  Sydney and Melbourne house values surge on lower interest rates The biggest jump in Sydney house values since 1988 help propel national market through November.CoreLogic's monthly measure of values showed dwelling values across the nation's capitals jumped by 1.7 per cent in November, the biggest monthly lift since 2003.

Very strong home price gains in Sydney and Melbourne last month are driving national average dwelling values higher, but analysts caution August's sharp bump is not necessarily the beginning of a fresh boom.

Sydney and Melbourne house values jumped through August on the back of the Reserve Bank's cut to official interest rates. While stronger over the past quarter, values in the two cities are still down over the year. House values in Sydney are off by 7.7 per cent since August last year while in Melbourne they

a close up of a sign: More homes were auctioned over the weekend than at any time since March 2018. (ABC News: Ian Cutmore)© Provided by ABC Business More homes were auctioned over the weekend than at any time since March 2018. (ABC News: Ian Cutmore)

House prices in most Australian cities are surging, with average prices nationally posting their first annual growth in 19 months, even as the economy continues to splutter.

The widely watched CoreLogic home value index jumped 1.7 per cent nationally in October, taking the index to a small annual rise of 0.1 per cent.

CoreLogic's head of research, Tim Lawless, said that was the first national annual home price growth since April 2018.

"The synergy of a [cumulative] 75-basis-point 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," Mr Lawless said.

ASX shares rising on booming Australian house prices

  ASX shares rising on booming Australian house prices Australian house prices are booming again according to CoreLogic, which ASX shares are doing well?Every month CoreLogic releases its national Home Value Index for the overall country, as well as the capital and regional areas.

Capital city house prices have grown at their strongest annual rate in almost seven years after interest rate cuts and investor demand lit a fire under property values in Sydney and Melbourne , according to CoreLogic. The property analytics group says Sydney dwelling prices grew 2.6 per cent in February

Housing markets surge across Australia as Sydney prices rise at their fastest speed in more than three Housing prices across Australia rose in November , with Sydney seeing its fastest growth rate in Melbourne saw a similar increase of 2.3 per cent over the month, leaving prices in the Victorian

"Additionally, we're seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up.

"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."

There are early signs that more sellers are taking advantage of the rise in prices to put their properties on the market.

CoreLogic's weekly auction figures showed that more than 3,000 homes went under the hammer last weekend — the most since March 2018.

Despite more homes being up for sale, a preliminary clearance rate of 79 per cent across the capital cities was 10 percentage points higher than the previous weekend and almost double the 41 per cent recorded on the same weekend a year earlier.

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Melbourne market falls 1.6% in a month as property crash continues to accelerate .

Sydney dwelling prices are expected to jump between 10 and 14 per cent while Melbourne home values are set to rise by up to 15 per cent, even Home prices across capital cities are forecast to surge by up to 11 per cent over the next 12 months, even without further interest rate cuts, driven by

Sydney's preliminary clearance rate of almost 85 per cent was near peak boom-time levels, while Melbourne's auction success rate of 78 per cent indicated further price rises.

New records likely within months

Given current market trends, Mr Lawless expects new price records in Australia's two biggest cities within months.

"Melbourne values are still down from their peak by nearly 4 per cent, so the recovery there is likely to be a little bit shorter, probably in the next two months," he told ABC News.

"And Sydney in the next four months. Sydney values are still down 8 per cent from their [2017] market peak."

Hobart and Canberra home prices are already at record levels. By way of contrast, Perth is 21 per cent off its peak and Darwin prices have fallen more than 30 per cent.

However, Mr Lawless said the current breakneck pace of price increases in the two biggest capitals was unlikely to be sustainable for long, even if interest rates fell further.

Why you need to fill up NOW: Fuel experts warn of a massive rise in petrol prices later this week

  Why you need to fill up NOW: Fuel experts warn of a massive rise in petrol prices later this week East coast motorists are set to feel the pinch when prices in Melbourne , Sydney and Brisbane rise later in the week, Commsec senior economist Ryan Felsman said. Drivers in Sydney and Melbourne could see prices of $1.70 per litre in some suburbs by the weekend. Meanwhile, prices in Brisbane had already hit $1.54 per litre on Monday.Motorists were encouraged to shop around by using smartphone apps to find the cheapest nearby fuel.Mr Felsman said prices were on the march again after retail discounting cycles ended last week.

House price falls in Sydney and Melbourne accelerated through February. Skip to sections navigation Skip to content Skip to footer. Sydney and Melbourne house values fell more than 1 per cent in February, figures show, amid signs the property slowdown is broadening to almost every

Weaker house markets in Sydney and Melbourne are pushing up rental yields for investors as purchase prices fall or rise more slowly than rents, Domain Group's latest figures show. In Sydney , the most expensive city for housing , the gross yield on houses picked up to 3.11 per cent in the March

"Annualising the growth rate over the past three months implies the national index is already tracking well above double-digit annual growth (+15.3 per cent), while Sydney and Melbourne dwellings are tracking around the mid-20 per cent range for annualised capital gains based on the most recent three-month trend," he said.

"Considering wages and household income growth remains low, economic conditions are losing momentum and housing affordability is once again worsening (from an already high base in the largest cities), there are likely to be some headwinds in maintaining such a fast recovery."

Very uneven house price boom

Moreover, the rebound in home prices is not uniform across the country.

While Sydney prices surged 2.7 per cent last month, Hobart jumped 2.3 per cent, Melbourne 2.2 per cent and Canberra 1.6 per cent, price rises were more subdued in Brisbane, Adelaide and Perth, while values in Darwin fell another 1.2 per cent.

Over the past quarter, only Sydney and Melbourne posted outsized gains, while Canberra, Hobart, Brisbane and Adelaide rose moderately and Perth and Darwin continued to fall.

The RBA is anticipating a housing shortage and another crazy price boom in markets that really don't need it

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Sydney house prices recorded an annual growth of 18.4 per cent - the highest figure since 2002. "Prior to capital gains accelerating half way through last year, the growth trend had been moderating, reaching a Melbourne property prices grew by more than 13 per cent over the last 12 months.

Sydney and Melbourne house prices will soon be growing at double-digit rates. ANZ says the Sydney and Melbourne property markets are likely to accelerate by Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs. A study has identified big differences in property price

Even within Sydney and Melbourne, CoreLogic's data show that more expensive areas were recording far bigger price increases than lower-priced suburbs.

The four strongest sub-regions for capital city price gains over the past year were Melbourne's inner-east, inner-Melbourne, Sydney's Hills district and the Harbour City's inner-west.

Overall, the quarterly price rise in the most valuable quarter of Sydney properties was 7.4 per cent, versus 3.8 per cent across the lower quartile, with a similar gap in Melbourne (8.1 versus 4.2 per cent).

"The stronger performance across the higher value end of the market can likely be attributed to a combination of values falling more in this sector during the downturn, as well as recent adjustments to serviceability rules which has boosted borrowing capacity," Mr Lawless explained.

"Additionally, the scarcity value of detached homes in many of the blue-chip property markets is another factor supporting strong capital gains."

However, Mr Lawless expects those gains to radiate outwards towards lower value regions as buyers again get priced out of premium areas.

Maclaren double leads City over Wanderers .
Jamie Maclaren has continued his remarkable goalscoring run with two goals in Melbourne City's 3-2 A-League win over Western Sydney. The Wanderers looked headed for an upset early on Friday night when Kwame Yeboah found the net after just 90 seconds at Bankwest Stadium. Maclaren equalised after Western Sydney midfielder Pirmin Schwegler was controversially ruled to have dragged Denis Genreau in the box in the 55th minute.Replays showed the contact was minimal between the pair.

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