Another 2.2% up in national home values in month May - CoreLogic

According to the latest Australia Housing Index Result as at May 31, 2021 released by CoreLogic, the combined capital city index rose by 2.3% with a 2.0% increases across the combined regional areas, which gives an average of 2.3% increase in national wide.

Source: CoreLogic 31 May 2021

Interestingly, in addition to the current low interest rate with government special incentive scheme for home buyers that may be the reasons behind this booming, the imbalance in housing market supply v.s. demand could also play another key role as the catalyst of this phenomenon. It goes without saying that the high action clearance rate is an expected result.

Source: CoreLogic 31 May 2021

Although the combined capital cities weighted average action clearance rate were strong with both upper quartile and lower quartile of the housing market increased in value by 9.2% and 4.2% respectively over the past three months ending May, it clearly impacts first home buyer sector and has made Australia properties less affordable in average. RBA, APRA, and ASIC will certainly watch current market movement with lending activities closely.

Source: CoreLogic 31 May 2021