This constant rise in home values follows suit with the last twelve months where dwelling values are on average 12.9% higher than the same time last year – the biggest increase since 2010.
While the strength of capital gains is most evident in Sydney and Melbourne, where the annual rate of growth is close to 19% and 16% respectively, the smaller markets of Canberra and Hobart are seeing some welcomed acceleration in the rate of value growth.
Adelaide and Brisbane continue to record more sustainable growth conditions; hovering around the 3.5% mark. In addition, dwelling values in both Perth and Darwin have continued to trend lower from both a quarterly and annual basis.
While such a high rate of capital gains across Australia is creating significant wealth for homeowners, issues relating to affordability are now more prevalent than ever; with first home buyers at record low rates of participation.
It is no surprise that the Australian housing market is experiencing a price boom; however, the real question is: when will it stop?