Economists are now predicting Australian house prices will reach new heights in November. National Australia Bank’s, Gareth Spence and Mark Browning predict major capital city prices will continue to rise.
The pair say the biggest influence on prices is that supply remains depressed and demand strong.
And in bad news for would-be home buyers, they say house price growth is staying ahead of income growth.
CoreLogic data, backs the price growth theory, with increases across the capital cities in the September quarter.
Australian Bureau of Statistics figures show Australia’s property market is now worth $10.1 trillion following the rise in home values.
That’s a steep increase from 2015, when the residential real estate market was worth $6 trillion and a steady rise since hitting $9 trillion in October 2021.
NAB believes the undersupply of property will get worse before it gets better.
“Apart from the early COVID dip, annual dwelling approvals haven’t been this low since 2013,” it says.