House prices continued to surge across the nation in May with values up by more than one per cent in every capital city.
The CoreLogic home value index rose 2.2 per cent in May, just shy of the 2.8 per cent pace recorded in March – a 32-year high.
CoreLogic’s research director Tim Lawless said growth conditions remained broad-based both geographically and across housing types.
“Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets,” he said.
Across the capital cities, the monthly change in dwelling values ranged from a 1.1 per cent rise in Perth through to a 3.2 per cent jump in Hobart.
Across the non-capital city regions, conditions were more diverse with regional NSW leading monthly gains, up 2.5 per cent, while values in regional Western Australia had the weakest result, down 0.1 per cent.
Mr Lawless said the combination of improving economic conditions and low interest rates is continuing to support consumer confidence, which in turn has created persistently strong demand for housing.
“At the same time, advertised supply remains well below average,” he said.
“This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.”
CORELOGIC NATIONAL HOME VALUE INDEX FOR MAY
National – up 2.2 per cent per cent, up 10.6 per cent
Sydney – up 3.0 per cent, up 11.2 per cent
Melbourne – up 1.8 per cent, up 5.0 per cent
Brisbane – up 2.0 per cent, up 10.6 per cent
Adelaide – up 1.9 per cent, up 11.8 per cent
Perth – up 1.1 per cent, up 8.5 per cent
Hobart – up 3.2 per cent, up 16.5 per cent
Darwin – up 2.7 per cent, up 20.3 per cent
Canberra – up 1.7 per cent, up 15.6 per cent
Combined capitals – up 2.3 per cent, up 9.4 per cent
Combined regional – up 2.0 per cent, up 15.2 per cent