Australia home prices surge amid lockdowns
Australian home prices climbed in July despite a coronavirus lockdown in Sydney that slowed auctions. However, stretched valuations were seen to make affordability a longer-term drag.
Monday data from property consultant CoreLogic showed a 1.6% increase in national home prices in July after a 1.9% rise in June. A shift to a work-from-home setup drove a record of 16.1% growth in prices on last year, the fastest annual pace since 2004. House prices surged 18.4%.
Prices in Sydney jumped 2.0% in the month, up 18.2% from a year ago. Melbourne added 1.3%, Brisbane 2.0%, and Adelaide 1.7%. A 1.6% price expansion was recorded across the major cities in July, while the regions rose 1.7%.
Currently, Sydney’s average home is worth more than A$1 million.
Despite the surge, the prospect of low borrowing costs remains enticing for buyers. The Reserve Bank of Australia (RBA) said rates may remain at 0.1 percent until 2024.