January Price Lift

Housing values are continuing to rise, with new figures showing an increase in most of Australia’s major markets inJanuary.

PropTrack data shows Australian home values rose by 0.2% in January, while Cotality puts the increase at 0.8%.

Both data houses agree that the monthly increase has resulted in solid growth over the past 12 months.

While the Perth market is below its peak, it still achieved the highest price growth among the capital city house markets in the past 12 months with medians up by 16.9% and units up by 21.1% according to PropTrack.

Senior Economist Angus Moore says the smaller capital cities are recording the strongest growth, while Sydney and Melbourne dwelling prices have softened in recent months.

Darwin’s median house price was up by 15.5%, followed by Adelaide up by 13.6% and Brisbane up by 13.1%, in the past 12months.

Moore says unemployment rates remain very low and housing supply is limited which will help support ongoing demand and price growth.

Cotality research director, Tim Lawless, says the number of homes advertised for sale is 19% below the same time last year and 25% below the five-year average for this time of year.

He says affordable markets in particular are enjoying strong demand.

“This trend of stronger growth conditions at lower price points is supported by intense competition for more affordable houses,” he says.

“This is where first home buyers, investors and, progressively, mainstream demand is most concentrated.”