House price growth in the major capital cities is about to accelerate, according to the ANZ’s housing team who released their Australian Housing Chartbook yesterday.
The ANZ summed up the current housing market as being:
…at the early stages of a solid cyclical upturn, buoyed by low interest rates, tightening underlying market supply/demand fundamentals and improved affordability.
Auction clearance rates are rising, which the ANZ says is a key driver of house price growth, and the relationship is clear in the chart above. Strong results and a lack of stock are combining with pent-up demand to drive prices.
While the ANZ again repeats this is no bubble, it seems clear that Australian home owners can look forward to more gains by Christmas.