| 24.10,19. 08:25 PM |
Australia's house prices boom, lifting $20,000 in three months
Even Perth, which felt the sharpest drop in values of any capital city, house prices only lost 1 per cent of value in the last quarter to a median price of $527,2017. (AAP)
Australia's housing market has made a rapid turnaround, with prices in Sydney jumping almost $50,000 in just three months after the steepest downturn since the 1980s.
The national median house price increased 2.7 per cent in the past three months to $773,635, according to Domain's September House Price Report.
In June 2019, the national median was $753,556, meaning house prices have jumped more than $20,000 in just three months.
In Sydney, the country's biggest real estate market, house prices jumped 4.8 per cent – almost $50,000 – to an eye-watering median price of $1.079 million.
Even Perth, which felt the sharpest drop in values of any capital city, house prices only lost 1 per cent of value in the last quarter to a median price of $527,2017.
Sydney also has the most expensive flats in the country, with prices rising 2.6 per cent over the past three months to a median of $694,480, the report says.
Melbourne came a close second, with unit prices climbing 3.7 per cent in value over the last quarter to a median of $520,940.
The biggest fall in unit prices was in Adelaide, where the average price of a flat fell 5.2 per cent to a median of $302,756.
The cheapest capital city to purchase an apartment in is Darwin, where unit prices flatlined to a September quarter median of $294,951.
Domain's senior research analyst Dr Nicola Powell said a variety of factors are fuelling the price rebound.
"The ability to service a mortgage has fallen, prices are still below their peak … [and] we have seen a subtle relaxation of lending," Dr Powell said.
"All of these factors together is helping drive that recovery."
While house prices are rebounding rapidly, it doesn't mean those looking to enter the market have missed the boat in picking up a bargain.
CoreLogic's head of research Tim Lawless said that while prices are on track to eventually hit new record highs there is still time for new buyers.
"Although housing values are now consistently tracking higher, at least at a macro-level, the national index remains 6.8 per cent below the October 2017 peak, indicating that buyers still have some time to take advantage of improved housing affordability before values return to record highs," Lawless said.
"While all regions are benefitting from low mortgage rates and improved access to credit, economic and demographic conditions in New South Wales and Victoria continue to outperform most areas of the country.
"Population growth is higher, unemployment is lower and jobs growth is stronger, providing a solid platform for housing demand".