House prices in Melbourne and Sydney are charging higher, once again leaving Australia’s other mainland state capitals trailing in their wake.
According to data released by CoreLogic today, dwelling prices in Melbourne jumped 1.4% last week, leaving the increase on a month earlier at a staggering 4.3%.
Sydney prices rose by a smaller 0.6% for the week, although they too have risen by 3.4% in the past four weeks.
In comparison, prices in Australia’s other mainland capitals put in mixed performance over the week, lifting by 0.3% in Brisbane, and 0.1% in Adelaide, while they declined by 0.6% in Perth.
As seen in the table below from CoreLogic, the resurgent performance from the Melbourne and Sydney markets has seen prices nationally lift 5.4% this year in weighted terms.
In Melbourne they’ve jumped by 7.6%, marginally edging out Sydney where they’ve increased by a smaller 6.9%.
The gains in Brisbane and Adelaide have been far smaller over the same period, and have actually gone backwards in Perth.
From a year earlier prices have now increased by 10.6%, led by Melbourne and Sydney with increases of 15.5% and 13.1% respectively.
The recent acceleration in price growth has been seen in the CoreLogic data series in the past, often falling in May before rebounding in the months following.
This chart shows the seasonal pattern in the CoreLogic data series over the past three years.
That may help to explain the scale of the gains reported over the past four weeks in both Melbourne and Sydney, although the price growth seen nationally over the past year is not all that surprising given auction clearance rates still sit in the high 60% region, a level that has historically coincided with price growth across the nation’s capitals of around 10%.
This chart from UBS shows the relationship between annual price growth across Australia’s capitals to auction clearance rates.