Australian property prices rising to highest point in 17 years.

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CoreLogic research has revealed that Australia’s property prices rose 2.1% in February, marking their strongest national growth in 17 years with simultaneous rises across every state and territory which coincide with the record low interest rates.

CoreLogic’s Head of research Tim Lawless said “The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fuelled buyer demand,”

The property rise surge has elevated the national index 2.1% higher in February alone, which is the largest single month increase since August 2003, with Auction clearance rates are hovering around 80%.

Regional prices meanwhile are up 5.4% nationally over the last three months as they continue to rise faster than the capital city average.

As of last Monday 01.03.21, new Australian Bureau of Statistics (ABS) figures showed owner-occupier loans are up 12% on last month’s record high as Australians rush into the market.

BIS Oxford Economics principal economist Tim Hibbert said, “Consistent with accelerating price growth, households are taking out bigger mortgages. The average new loan size for owner-occupiers is now up around 12% since July for established dwellings to $545,000 nationally,”

“Investor demand growth continues to lag that of owner-occupiers, but the gap is closing.”

The new construction loans were up 20% on the previous month as the Home-Builder incentive encourages new homebuilding.