Australia's Housing Price is Recovering Rapidly!

The latest data from CoreLogic shows that Australian house prices went up by 2.1% in February, the largest monthly change in the national home value index since August 2003.

Stimulated by factors such as record low loan interest rates, continuous improvement in economic conditions, government incentives, and a lack of homes for sale, Australia's real estate market is prospering. Housing prices in every capital city and other parts of the state are increasing, which reflects the improving housing market.

CoreLogic research director Tim Lawless said that such a simultaneous rise has not occured in Australia for over a decade. The last time we saw a sustained increae in housing prices in every capital city and remote area was from mid-2009 to early 2010, when the post-global financial crisis stimulus measures boosted buyer demand.

Sydney and Melbourne are two strongest markets, with house prices rising by 2.5% and 2.1% respectively in February. These two cities in Australia have beeen working hard to rebound. The value of units in Sydney recorded its first monthly increase since April last year, and the value units in Melbourne also achieved its largest increase since the end of 2019.

Tim Lawless said it is unclear whether this new growth in Sydney and Melbourne will continue. Although their house prices are still lower than their previous highs, at the current rate of appreciation, the house prices in these two most expensive capital cities in Australia will soon break record highs.

Westpac's latest forecast: Between now and 2023, Australian real estate prices will rise by 20% in the next two years.

Westpac economists Bill Evans and Matthew Hassan said, "the most important thing at the moment is that Australia's real estate market has a strong momentum and continues to be supported by the financial environment and economic recovery. It will rise futher.

From the beginning of the pandemic to the current phase of vaccination, the real estate market outlook will just be more positive. Borders and national borders will eventually be reponed, and economic growth will be mainly focused towards the 3 capital cities: Sydney, Melbourne and Brisbane."

Sources: CoreLogic, WestPac, RealEstate.com.au, and The Sydney Morning Herald 2021