Sydney house prices have rebounded by 6.7 per cent since bottoming out in January, as low stock levels continue to collide with strong demand, CoreLogic’s June home value index shows.eased slightly last month, with prices rising by 1.7 per cent, which is slower than the 1.8 per cent recorded in May.
Auction clearance rates also lost momentum over the weekend, falling by 7.5 percentage points to 71.2 per cent, sparked by a rise in the portion of properties passed in at auction and withdrawn from the market. Housing values nationwide increased by 1.1 per cent in June, marking the fourth consecutive month of recovery, although it was a slight slowdown from the 1.2 per cent growth in the previous month.Melbourne added 0.7 per cent, while Brisbane was up by 1.3 per cent. Perth rose by 0.9 per cent to a new high, having recovered from the relatively mild 0.9 per cent decline through the downturn.
Independent economist Stephen Koukoulas said distressed selling could rise if the unemployment rate rose to 4.5 per cent as the RBA was expecting.“That’s going to cause some people who are currently servicing a mortgage to lose their jobs and may find it difficult to get another one, so they are forced to sell,” Mr Koukoulas said.
HSBC chief economist Paul Bloxham: “Demand, supported by population growth and constrained supply will continue to drive the housing market.”Buyers are also expected to pull back as it becomes harder to qualify for a loan amid rising interest rates and stricter serviceability criteria. “I think what we’re seeing is that the population growth story is still doing more to support the housing market than the higher interest rates are to suppress it.