The value of the Australian housing market has increased more than $1 trillion in the past five months, hitting a new record of more than $9.1 trillion in September, according to estimates from CoreLogic.
CoreLogic Head of Research, Eliza Owen said the September record came just five months after the market exceeded $8 trillion in April.
“This puts housing values around 28.2 per cent higher than the estimated value of superannuation, the ASX and commercial real estate combined,” Ms Owen explained.
“The increase in value has coincided with national house values reaching $719,209 over September, and units sitting at $586,993.”
Ms Owen noted the Australian dwelling market increased 20.3 per cent in the year to September, which was the highest rate of annual appreciation since June 1989.
With low interest rates and demand for properties currently exceeding advertised supply, Ms Owen said growth conditions remained strong.
However, she said it was becoming increasingly clear the market had moved past its peak rate of growth, which occurred in March when dwelling values increased by 2.8 per cent.
“Affordability is an increasing challenge for many segments of the market, but particularly first-home buyers who have not had the benefit of home ownership as a source of wealth through equity generation,” Ms Owen said.
“The announcement this week by APRA of further tightening of serviceability buffers is a subtle approach to financial stability and far less likely to move the housing market into negative territory.”
