The strong May numbers were largely the result of a surge in the Sydney market dwelling values which were up 3.1% over the month.
Sydney finished the month as the Best performing capital city with an increase of +6.6%, it also proved to have the lowest rental yields units at 4.0%.
Once again Sydney was names the most expensive city with a median dwelling price of $782,000.
After such a strong performance across the Sydney housing market, the annual rate of growth has moved substantially higher to reach 13.1% per annum after reaching a recent low point of 7.4% per annum growth over the 12 months ending March 2016.
The largest capital gains over the cycle to date has been in Sydney where dwelling values are 57.5% higher.
Sydney clearance rates remain firm, sitting at around the mid 70% mark over the past three weeks.
The high uses vs units, combined capital cities rate of auction clearance has demonstrated a remarkable bounce back after tracking below 60% during December with Sydney’s auction market recording a clearance rate as low as 52.9% in December.
The extent to which investors are fuelling the latest surge in Sydney home values is difficult to quantify, however housing finance data to March shows investors, as a proportion of all new mortgage commitments, have been trending higher since reaching a recent trough in November last year at 42.9%.