Australian home prices suffered a bumper in 2021 as lower interest rates pushed values higher, with values in Sydney alone rising on average by $ 4,200 each week.
Figures from real estate consultant CoreLogic released on Tuesday showed some heat exiting the market as national home prices rose 1.0% in December, down from 1.3% in November and peaking at 2.8% at the start. of the year.
Prices rose 22% for the year, with a 26% jump in regions surpassing a 21% increase for state capitals amid the transition to country living.
Sydney added just 0.3% in December, although that still took its gains for the year to 25% and produced a median house value of almost A $ 1.1 million (790,460 $).
Melbourne saw a rare 0.1% drop in December, but Brisbane jumped 2.9% and Adelaide 2.6%.
The boom has been a boon to household wallets and consumer confidence. The Australian Bureau of Statistics estimates that the value of the housing stock jumped by a trillion dollars in the six months leading up to September to reach A $ 9.3 trillion.
The hot market finally won over sellers in Sydney and Melbourne where listings rose sharply at the end of the year, contributing to the market slowdown.
Still, CoreLogic research director Tim Lawless noted that home sales for all of 2021 were about 40% above the decade average at a record high of 653,000, indicating a strong demand.
“Such a mismatch between the supply of available housing and the level of demand is a fundamental reason why house prices have risen so sharply,” Lawless said.
“As inventory levels normalize and affordability constraints and tighter credit conditions lower demand, it is reasonable to expect growing conditions to be more subdued in 2022.”
This story was posted from an agency feed with no text editing. Only the title has been changed.
Never miss a story! Stay connected and informed with Mint. Download our app now !!