The share prices of the ASX banks are up in reaction to rising house prices in the CoreLogic national index.
What happened?
Property prices continue to climb across, with an increase in every capital city.
Sydney house prices went up 0.4%, Melbourne house prices grew 0.7% and Brisbane house prices rose 0.6%.
Growth was even stronger in other markets. Adelaide house prices grew 1.3%, Perth real estate values grew 1.1%, Hobart dwelling prices went up 1.4% and both Darwin and Canberra climbed 1.9%.
Nationally, including regional areas, house prices went up 0.8%.
According to CoreLogic’s Head of Research, Tim Lawless, if the current growth trend continues, then it seems CoreLogic’s national home value index will increase beyond pre-COVID levels in early 2021. “The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace we could see a recovery from the COVID downturn as early as January or February next year. The recovery in Melbourne, where home values remain 5% below their recent peak, will take longer.”
What are the shares prices of big banks doing?
The share price of Westpac Banking Corp (ASX: WBC) is up 1%, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is currently up by 1.5%, the National Australia Bank Ltd (ASX: NAB) share price is up 0.7% and the Commonwealth Bank of Australia (ASX: CBA) share price is up 1.4%.
Other property-related businesses are also getting a boost. For example, the Brickworks Limited (ASX: BKW) share price is up 2.4% and the REA Group Limited (ASX: REA) share price has risen 0.25%.
Many home owners, banks and other businesses will be glad of the strength of the property market. Brickworks would be my pick of the ones I’ve mentioned.
