The Sydney market finished the month as the most expensive capital city with a median dwelling price of $785,000.
The combined capital city index, which is heavily weighted towards the Sydney property market recorded a 1.0% month-on-month gain, taking capital city dwelling values 41.3% higher since the growth cycle commenced in June 2012.
The quarterly pace of capital gains in Sydney peaked over the June quarter of 2015 at 7.4%.
Although value growth in Sydney and Melbourne is not as strong as it was at its peak, growth continues to be supported by high auction clearance rates which are now at their strongest levels since the June 2015 quarter.
In Sydney, clearance rates remained above 80% throughout September.
The most successful auction markets have been Sydney’s Eastern Suburbs where 89% of auctions were successful during September.
The housing market has clearly been a substantial source of wealth creation for many Australians, particularly for home owners in Sydney and Melbourne.
Since the end of 2008, Sydney dwelling values increased by almost 95%.
In markets such as Sydney and Melbourne where dwelling values are still showing strong growth despite lower volumes, lower transaction numbers are partially due to low advertised stock levels.
There are fewer than 20,000 dwellings currently being advertised for sale across Sydney, which is less than half the number of homes that were listed for sale five years ago.
Reduced stock levels create urgency in the market, adding to the upwards pressure on dwelling values.
As the spring selling season progresses, CoreLogic is now seeing a rise in newly advertised listing numbers, however, there are fewer newly advertised properties entering the market compared with a year ago across the combined capital cities.
The weaker new listing trend is mostly attributable to the Sydney market, where newly advertised listings are 18% lower than the same time last year.