RP Data says Australian home values increased 5.9 per cent nationally, based on about 145,000 sales analysed this year. It says demand has been underpinned by historically low mortgage rates and only small rises in unemployment.
It said Australian home values are now 1.8 per cent higher than their February 2008 peak.
“Not only has Australia’s residential property market outperformed the other major western markets, it has also provided superior returns compared to shares, commercial property, superannuation, hedge funds and private equities. Australia’s residential market has been further supported by low mortgage default rates, at just 0.6 percent, compared with 5 percent in the US and 3 percent in the UK.”
“Every mainland capital city has experienced solid growth during the first seven months of the year. “ Mr Lawless said.