Home Prices on the UP & UP!

Australian home prices grew by 3.7% in the September quarter – the highest quarterly growth seen in six years, are the results being reported in Australian Property Monitors – Septembers Quarterly House Price Series

Melbourne led the country with a 6.1 per cent increase over the June quarter.  The average house price in Melbourne was $487,249, compared with $437,560 in September last year. The city’s average house price rose 11.4%.

APM economist Matthew Bell said the rise in national house prices was led by “explosive” growth in the more expensive suburbs, which had started in capital cities and spread to the rest of the country.

In Sydney, the country’s largest housing market, median prices in the most expensive 50% of suburbs grew by nearly triple the rate experienced in the least expensive suburbs. “Another quarter of improving employment results and the share market rising by 20% has meant that buyers are stepping into the oversold top end of the market to purchase properties at prices still below their late 2007 highs,” adds Bell.

These types of results are not surprising given the actual downturn in the higher end market during last year’s GFC events, at some point these upper end markets were going to recover as our economy stabilised and with interest rates at record lows and ever increasing demand to live closer to major employment and city centres, these premium houses and quality land was bound to recover.