National property prices saw their first monthly increase since October 2017 as Melbourne and Sydney both posted healthy value gains over August.
Dwelling values went up 0.8% nationwide over the month, according to the latest numbers from CoreLogic, with Sydney and Melbourne up 1.6% and 1.4% respectively. Prices also went up in Canberra, Hobart and Brisbane.
The positive national figure masked ongoing weak performance in Darwin and Perth, which were both down for the month along with Adelaide.
Looking beyond monthly movements, Sydney, Melbourne and Hobart were also all up over the three winter months, although only the Apple Isle capital and Canberra were in positive territory over the year.
|National (combined capitals & regionals)||0.8%||0.6%||-5.2%
"The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low," said CoreLogic head of research, Tim Lawless.
Clearance rates in both Sydney and Melbourne are now at their highest levels since early 2017, according to CoreLogic.
"It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy,” Lawless said.
"While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.”
CommBank Senior Economist, Kristina Clifton, went a step further, arguing that based on the scale of the price increases, "it could be said that the boom-type conditions are returning".
Clifton also suggested that "rising house prices may also provide a boost to household spending through the wealth channel".