SYDNEY, Dec 1 (Reuters) - Australian home prices sped higher
across all the major cities in November as record-low interest
rates fuelled demand from first-time buyers, providing a welcome
windfall to consumer wealth and confidence.
Regional prices also boasted sizable gains as city dwellers
still smarting from coronavirus lockdowns sought more living
space and houses with gardens.
"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," said CoreLogic's head of research, Tim
Lawless.
That would be a remarkable turnaround from the depths of the
lockdown in April when analysts were predicting price falls of
10% or more this year and next.
Data from property consultant CoreLogic out on Monday showed
national home prices rose 0.8% in November, twice the gain seen
in October. Values were up 3.1% on November last year.
Prices across the major capitals rose 0.7% in November, from
October, lagging a 1.4% jump in the regions.
Sydney managed a gain of 0.4%, while Melbourne broke a
string of falls to rise 0.7% as the city reopened from a
marathon lockdown.
The recovery was led by cities that have been largely
COVID-free for some time. Values climbed 1.9% in Darwin and
Canberra; 1.3% in Adelaide; 1.1% in Perth and 1.4% in Hobart.
Prices also hit record highs in Brisbane, Adelaide, Hobart and
Canberra.
The gains were concentrated in houses where prices rose 1.1%
in the three months to November, while apartments fell by 0.6%
amid restrictions on international tourism and migration.
The rebound in values is a boon to consumer spending power
given Australia's housing stock was already valued at a heady
A$7.2 trillion ($5.29 trillion) in September.
The Reserve Bank of Australia (RBA) has indirectly supported
residential demand by cutting rates to just 0.1% and driving
mortgage rates to all-time lows.
($1 = 1.3615 Australian dollars)
(Reporting by Wayne Cole in Sydney
Editing by Matthew Lewis)