Brighter Buying

Market Update – Price growth continues following record high

by Justin Watt, CEO 10 June 2021

Australian housing markets hit a 32-year high point in March for monthly growth and the upward swing continues.

May clocked up 2.2 per cent growth following a softer April growth spurt of 1.8 per cent.

In Brissie we clocked up 1.7 per cent in April followed by 2.0 per cent in May – that’s a whopping 11.2 per cent higher than a year ago.

It’s not just Brissie enjoying a boom. Of all the areas in the CoreLogic analysis, 97 per cent have recorded growth over the past three months.

“Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets,” says CoreLogic’s research director Tim Lawless.

So what’s driving the growth? The supply and demand balance is still tipping in favour of sellers.

“The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn has created persistently strong demand for housing,” Mr Lawless says.  “At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.”

Interestingly, one thing that has changed is that the price growth is now strongest at the upper end of the market, whereas it had previously been stronger at the more affordable end of the market.

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