Australian property prices grew by 1.5% over August, according to CoreLogic.
While that’s the slowest monthly rise since January, it’s still a rate of growth “well above average”.
It also takes the national median property value to $666,514 – around $103,400 more than it was the same time last year.
To understand why property prices are still growing despite lockdowns, you only need to look at the disconnect between supply and demand.
In early May, newly advertised properties were tracking 19.7% above the five-year average.
However, by August, the number of new listings dropped to -5.8% below the five-year average. This takes total active listings numbers to -29.4% below average (see chart).
And while demand has been negatively impacted by the restrictions, the number of home sales over the three months to August remains 30% higher than average.
So far more sales are happening for every new property listed – stoking a sense of urgency and contributing to the uplift in prices.
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