New figures from CoreLogic and ANZ are sparking predictions that property prices could reach new highs in the coming months.
According to the data, property values reached peak lows in June, and have since been climbing, with national house prices rising by 1.7% over the month of November.
In June 2019, national house prices had fallen 8.4% from their 2017 peak.
However, according to ANZ Economist, Felicity Emmett, this was to be the turning point for housing affordability.
“Although affordability has improved following a downturn in housing values, June 2019 marked a turning point as dwelling values again began to outpace household incomes across capital cities, with the exception of Perth and Darwin,” she said.
With numbers to excite homeowners and investors, November sales figures agree.
Over November, house prices have increased in all capital cities, except for Darwin, where they fell by 1.2%.
Sydney saw its fastest pace of rise in 31 years with 2.7%.
In other markets, Melbourne saw the second-highest rise, with 2.3%.
In Brisbane there was a 0.8% rise, 2.3% in Hobart, 0.5% in Adelaide and 1.6% in Canberra.
Perth saw their first monthly rise in two years with 0.4%.
According to CoreLogic’s head of research, Tim Lawless, we’re likely to see higher prices in the first half of next year.
“We see more urgency coming back into the market, especially in Melbourne and Sydney…If this trend continues, we could see property prices reach new highs early next year,” he said.
Why the sudden jump?
Lawless says that a combination of factors have triggered the recent rise in numbers.
“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,” he said.
“Additionally, we’re seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up.“
Additional factors continue to support a lift in values – With the likelihood that interest rates are likely to fall further over the coming months and an improvement in housing affordability following the recent downturn.
Words by Kathryn Lee
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