Capital city house prices are poised for a sharp recovery according to market analysis by CoreLogic.
Nationally values rose 1.4% in March – more than four times faster than the previous month.
Sydney house prices increased 1.4%, Melbourne 0.6%, Perth 0.5% and Brisbane 0.1%.
CoreLogic research director Tim Lawless, says a combination of low stock, tight rental market and growing demand from overseas migrants is behind the price growth.
Listings are well down on the same time last year with 17.7% fewer homes being offered for sale.
“If you were to ask me a few months ago, I wouldn’t have thought we’d start to see growth conditions returning this early in the cycle, let alone a 1.4 % jump in a month for Sydney,” Lawless says.
“I think the supply levels being as low as they are, could be creating a competitive environment among those buyers. There’s also the amplifying effect of migration, which, normally would not have too much impact on purchasing demand.”