Australia’s housing boom has no end in sight as record-low rates and improved economic conditions entice buyers back into the market.
Less than 12 months after the federal government put the national economy into temporary lockdown, property prices across the country are soaring as supply fails to meet demand.
Values rose at the fastest pace since 2003 in February, with prices rising in every capital city and regional area, according to property analytics firm CoreLogic.
And analysts say prices will continue rising for the foreseeable future.
“The conditions are probably in place for further price rises. Whether it can sustain the momentum that we saw in January and February is less clear,” EY chief economist Jo Masters said.
CoreLogic research director Tim Lawless, who described the current upswing as a “broad-based boom”, said an uptick in reports lodged by real estate agents when preparing new listings suggested more properties would come on to the market in March.
This means price growth is expected to remain strong until at least the second half of the year, at which point the market may slow down as more and more housing becomes unaffordable for increasing numbers of people.
“There is a phasing out of a lot of the government incentives, as well,” Mr Lawless said.