Australia’s February Home Prices Increase at a Pace Last Seen in August 2003

CoreLogic is reporting that Australian homes prices in February 2021, rose at a pace not seen since August of 2003. As government incentives and record low borrowing rates drew more buyers into the housing market and raised concerns about them overheating. The CoreLogic data showed national home prices rose 2.1% in February, up from January when they added 0.9%. Values were up 4.0% year-over-year. Sydney and Melbourne were among the strongest markets last month, recording a 2.5% and 2.1% lift in home values, respectively, as Australia’s two largest cities catch up from weaker performance throughout 2020. Tim Lawless, CoreLogic’s head of research, said in regard to the surge in pricing, “At this current rate of appreciation it won’t be long before Australia’s two most expensive capital city markets are moving through new record highs.” Lawless added, “With household incomes expected to remain subdued and stimulus winding down, it is likely affordability will once again become a challenge in these cities.”