Australia home prices continue to climb, pace slows a touch in April By Reuters

© Reuters. FILE PHOTO: New homes line a street in the Sydney suburb of Moorebank in Australia

SYDNEY (Reuters) – Australian home prices posted another solid increase in April though the pace of ascent slowed a little as affordability became a bigger problem as houses moved beyond the reach of many buyers.

Data from property consultant CoreLogic out on Monday showed national home prices climbed 1.8% in April, after a 2.8% jump in March that had been the largest gain in 32 years. Prices were up 7.8% on last year, and 6.8% in just the three months to April.

Sydney prices raced up 2.4% in April, while Melbourne added 1.3%, Brisbane 1.7% and Perth 0.8%.

The red-hot market has provided a much-needed windfall to consumer wealth and confidence. The Australian Bureau of Statistics estimates the value of homes rose A$258 billion in the December quarter to hit A$7.7 trillion, and that was before the latest surge.

Still, CoreLogic’s research director, Tim Lawless, said the pace of gains could slow as inventory levels rise and affordability becomes a bigger constraint.

“With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs,” Lawless said.

The trend toward houses continued with prices in the capital cities up 8.6% in the first four months of the year, twice the gain for apartments.

Demand for property outside the cities saw regional prices jump a record 1.9% in April, giving an annual rise of 13%.

Buyers have been encouraged by the outlook for borrowing costs, with the Reserve Bank of Australia repeatedly saying rates were likely to remain at a historic low of 0.1% until at least 2024.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button