Combined capital city home values have risen by 1.6 per cent over the past month, moving 0.7 per cent higher than the record high of October 2010.
The result was revealed in yesterday’s RP Data-Rismark September Home Value Index, which showed that capital city dwelling values have increased by 8.7 per cent between June 2012 and September 2013.
The gain was primarily fuelled by the Sydney and Melbourne markets, which are seeing the strongest market conditions since April 2009 and May 2010 respectively.
RP Data research director and analyst Tim Lawless said Sydney home values were up 2.5 per cent over the month, while Melbourne saw a similar 2.4 per cent increase.
Adelaide has shown a more subdued rise of 1.1 per cent, while dwelling values have moved lower in Brisbane (-0.3 per cent), Perth (-0.1 per cent), Hobart (-2.0 per cent), Darwin (-2.5 per cent) and Canberra (-0.7 per cent).
Cameron Kusher, analyst at RP Data, told Smart Property Investment that the substantial growth seen in Sydney and Melbourne will likely not carry through to the end of the year, as the first and third quarter of the housing market are typically the strongest.
“The market does tend to be quite volatile, with some weak growth and some strong growth going forward,” he said. “We’ll see more moderate growth in the coming months.”
Mr Kusher said current market conditions were a challenge for buyers, as competition is high but stock levels are lower now than they were a year ago. “That creates a sense of urgency and panic,” he said.
Meanwhile, he said conditions for sellers are great “because there’s not much competition and getting a sale is proving much quicker”.