SYDNEY - Australian home prices climbed at a brisk pace in May, posting the largest monthly gain since October, as a sustained squeeze on supply of affordable homes in most major capital cities continued to push prices up nationwide, data showed on Monday.
CoreLogic Research Director Tim Lawless said low supply had kept Australian housing prices largely insulated from the combined effect of high interest rates, cost of living pressures and deeply pessimistic consumer sentiment."Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices."
That has led to prices climbing in state capital cities, with Perth up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%. In dollar terms, it is the equivalent of the median value rising by more than A$12,000 month-to-month. "Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year," Lawless said.Don’t Buy a House in These 3 Cities Facing a ‘Climate Change Real Estate Bubble’