Housing values charted the largest month-on-month increase in well over four years in October. The CoreLogic Home Value Index showed a 1.2% rise in national dwelling values over the four weeks, delivering the fourth straight month of increased values and proving the largest monthly surge evidenced since May 2015.
While the growth continues to be centered in Melbourne and Sydney, dwelling values trended higher across most of the capital cities as lower mortgage rates and improved credit availability spurred on buyer demand.
Aside from Perth, dwelling values were up across every capital city over the month.
Further, while just seven of the 46 capital city sub-regions recorded a rise in dwelling values over the twelve months ending October 2019, that was "starkly contrasted" by the 38 of the 46 which recorded a rise in values over the three months ending October 2019.
"Such a broad-based lift in values across the capital city sub-regions over the most recent three-month period demonstrates the depth of the current housing market recovery," said CoreLogic research director Tim Lawless.
The recovery trend in Melbourne overtook Sydney in October, with dwelling values surging 2.3% higher over the month; the largest month-on-month gain since November 2009. Melbourne housing values have recovered 6.0% since moving through a trough in May 2019, while Sydney values are up 5.3% from the recent May low.
"It's becoming increasingly clear that the housing market rebound is gathering pace, both geographically and across the broad valuation cohorts, off the back of lower mortgage rates and improved access to credit, as well as an improvement in affordability relative to the market peak several years ago and consistently high demand via population growth," said Lawless.
"Demand for housing is responding to stimulus measures, including mortgage rates that are now lower than anything we have seen since the 1950s and improved mortgage serviceability tests following APRA's decision to adjust the minimum interest rate serviceability rules in July this year."