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Aussie house prices rise $1,990 a week, but are ‘slowing’

·2-min read
Australian currency fanned out and an aerial shot of an Australian suburb.
Aussie home prices continue to rise but the pace of growth is slowing, according to CoreLogic (Source: Getty)

Australian house prices have continued to rise despite lockdowns sweeping the nations, but growth has slowed to its lowest pace since January.

According to CoreLogic’s latest figures, national dwelling values rose 1.5 per cent in August, and while the figures continue to climb, the rise has been ‘losing steam’ for months.

The slowdown will be welcomed by many potential buyers after prices reached a peak in March this year, when they rose 2.8 per cent in a month.

CoreLogic research director Tim Lawless said the slowing rate of growth probably has more to do with worsening affordability constraints than ongoing lockdowns.

“Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don’t yet own a home,” he said.

“Lockdowns are having a clear impact on consumer sentiment, however to date the restrictions have resulted in falling advertised listings and, to a lesser extent, fewer home sales, with less impact on price growth momentum.”

Lawless said it’s likely that the ongoing shortage of properties for sale is central to the pressure on housing values.

Prices across the nation

Every capital city recorded a rise in home values for the month, with the exception of Darwin where values fell 0.1 per cent.

A chart showing dwelling value price changes across Australia's capital cities.
(Source: CoreLogic)

The August update takes Australian housing values 15.8 per cent since January and 18.4 per cent above levels a year ago.

In dollar terms, the increase in national dwelling values equates to approximately $103,400 in 12 months, or $1,990 per week.

In comparison, Australian wages are rising at the average annual rate of 1.7 per cent.

Despite the monthly rate of growth slowing, Lawless points out that it is still the highest pace of yearly growth over the last year since July 1989.

“Through the late 1980’s, the annual pace of national home value appreciation was as high as 31 per cent, so the market isn’t quite in unprecedented territory,” Lawless said.

“The annual growth rate at the moment is trending higher, in fact, it is 3.6 times higher than the thirty-year average rate of annual growth.”

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