House prices in some of the most sought-after neighbourhoods in Australia have been rising as much as $20,000 a week in the months before lockdown, according to new analysis by Domain.
The Sydney housing market has been going gangbusters this year and according to the latest Domain House Price Report, property prices in several areas of Sydney rose by more than the wages residents would have earned there during the June quarter.
This includes locations in the eastern suburbs ($18,807 a week), North Sydney and Hornsby ($18,000), Ryde ($16,884), the northern beaches ($16,000), Sutherland ($13,211), and the city and inner south ($12,692).
- Canberra, which escaped the brunt of the pandemic until recently, recorded strong growth of $7138 per week
- Hobart apartment prices rose by $5153 per week,
- Property values in Melbourne's Mornington Peninsula rose $4076 per week and
- Darwin units added $5000 a week during the June quarter.
The markets will slow now.
But Covid Delta is unlikely to derail our property markets in the long term according to the latest ANZ Bank research.
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Our housing markets remain in very good shape with national house prices continuing to rise strongly, even in Sydney where increasing levels of mobility restrictions have been in place since June.
According to ANZ, ultra-low interest rates, high savings buffers, and ongoing fiscal support are likely to continue to support the housing market.
Moreover, ANZ has bumped up their 2021 forecasts a little.
They now forecast average capital city housing prices to rise just over 20% in 2021.
However, ANZ expects that price gains will moderate from the hectic pace of the first half of this year, given the increased uncertainty around the outlook, slightly higher fixed mortgage rates, and the prospect of macroprudential measures.
And then they are expecting average price gains of 7% in 2022. Still very respectable growth!