Australians who own property in three capital cities have likely “earned more” from rising dwelling valued compared to their yearly salary.
Fresh figures released by Proptrack show house prices nationally rose by another 0.6 per cent in October marking the tenth consecutive month of house price appreciation.
Dwelling values in Sydney have now grown by $91,600, Brisbane prices grew by $112,700, and Perth prices are up $100,400.
These three capitals beat the median full-time salary in Australia of $88,400.
Meanwhile prices in Adelaide appreciated by $82,600 and Darwin prices rose to $69,400, just short of outpacing salaries.
Prices in Melbourne, Canberra and Hobart lagged behind but still have grown by $44,400, $41,000 and $37,800 respectively.
House prices have risen every single month since the Reserve Bank of Australia started reducing the cash rate.
REA Group senior economist Eleanor Creagh said further price rises are likely over the warmer months.
“Looking ahead, this year’s series of rate cuts, population inflows and the expanded Home Guarantee Scheme will continue to bolster demand,” Ms Creagh said.
“With stock on market constrained and new supply challenged, conditions remain tilted toward sellers. The market appears set for further price gains throughout spring and into summer.”
According to Proptrack all capital cities rose in value in October.
Six of the eight capitals are trading at a record high with Canberra and Hobart falling just below their peaks.
Ms Creagh says increased borrowing capacities, lower mortgage rates and renewed confidence is fuelling further competition in the housing market, but the pattern of growth is shifting.
“Over the past year, Darwin, Hobart, Melbourne and Sydney have seen the fastest acceleration in annual gains with these previously softer markets regaining momentum,” she said.
“In contrast, the pace of annual growth is easing from earlier highs in Brisbane, Adelaide and Perth, though prices are still at record levels and continue to rise briskly.”
Regional prices have slowed in all areas besides Victoria.
