CoreLogic’s monthly house price data and Australian home value index showed big rebounds in the Australian property market during the first month of spring.
House Prices: September Results Just In
CoreLogic is a research firm that monitors residential and commercial property prices across Australia. The Home Value Index combines recent sales data with information about the attributes of individual properties.
According to CoreLogic, this allows them to distinguish between price changes due to property attributes and price changes due to underlying residential property conditions.
In September, national dwelling values rose 0.9%, led once again by Sydney and Melbourne, which both saw increases of 1.7%.
Canberra prices were up 1%, while Brisbane prices increased by 0.1%. Adelaide was flat and Perth, Hobart and Darwin each recorded declines in property values.
Over the last three months, Sydney prices are now up 3.5% and Melbourne prices are up 3.4%.
CoreLogic head of research Tim Lawless suggested prices may be returning to record highs.
“Although housing values are now consistently tracking higher, at least at a macro-level, the national index remains 6.8% below the October 2017 peak, indicating that buyers still have some time to take advantage of improved housing affordability before values return to record highs,” he said.
What Does This Mean For ASX Investors?
ASX shares in all four of the big banks have opened slightly higher this morning, with Westpac (ASX: WBC) and Commonwealth Bank (ASX: CBA) leading the way. ASX-listed real estate investment trusts (REITs) like Dexus (ASX: DXS) and Goodman Group (ASX: GMG) have also opened higher.
Banks, REITs and builders could continue to benefit if house prices continue their current trend. One other impact is that high house price growth could be a factor the Reserve Bank of Australia considers today when making an interest rate decision. Growth this high may be enough to see the RBA hold off on another cut.
If a rate cut comes anyway, the three dividend shares in the free report below might begin to look even more appealing.
Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.