Property prices across Australia have experienced growth across the eight states and territory capitals. According to CoreLogic, prices rose 0.9% in January alone. Even Perth has stabilized after being slammed from an almost 6 year downturn. At this rate, property values in Melbourne could be back at a record high as soon as this month, with Sydney not far behind.

Tim Lawless, head of research from CoreLogic is of the view that this pace is still unsustainable, considering, household income growth is sluggish and housing affordability challenges are worsening. As well as, the interest rate cuts and loosening of lending criteria. Price increases are being driven by a shortage of house for sale. January, the height of Australia’s summer holiday season, is traditionally the quietest month of the year.

So, a key test will be what happens if more properties come onto the market. The knock-on effect could dampen the sense of urgency to purchase housing and could mitigate more rapid growth. We look forward to the auction results and where the stats line up when there are more properties, on the market, to meet demands.