CBA just reported that national dwelling prices have risen strongly over the past three months. Prices rose by 1.4%in October, 1.0% in September and 1.0% in August
House prices have risen faster than unit prices
Prices nationally now sit 3.7% above their June 2019 trough.
Price rises have been greatest in Sydney and Melbourne over the past three months
The flow of credit is key
The flow of credit (i.e. new lending) has a clear impact on dwelling prices. More specifically, the annual change in the flow of credit has a close leading relationship with the annual change in dwelling prices by around six months.
New lending is driven by the supply and demand for credit. The latest ABS lending data indicates that the flow of housing credit has picked up materially over the past four months.
Over the four months to September, it grew at an annualised pace of 52%!
It has been a broad-based increase across investors and owner-occupiers(including first home buyers).
Property Club is at the forefront of the best properties in the best areas, best placed for this capital growth upswing – make contact with your Property Mentor or hit firstname.lastname@example.org for further information on the great properties available for Club members!