Australia's home prices keep rising in February, defying rate hike
SYDNEY, March 2 (Reuters) - Australia's housing prices rose again in February as mid-sized capitals like Perth and Brisbane chalked up solid gains, defying last month's rate hike, data from Cotality showed on Monday.
However, prices in Sydney and Melbourne flatlined, which could signal an easing in growth conditions elsewhere down the track, said Tim Lawless, Cotality's research director, adding that vendors were becoming more motivated to sell in those markets.
The Reserve Bank of Australia raised interest rates by 25 basis points to 3.85% last month, after inflation re-accelerated after three rate cuts last year. Easier financial conditions, with booming property prices, were one reason behind the move.
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National home prices rose 0.8% in February to a record median value of A$922,838 ($649,308.82), figures from Cotality showed. Prices for Perth surged by 2.3%, while Brisbane and Adelaide gained by 1.6% and 1.3% respectively, driven by still low inventory levels.
House prices in Sydney and Melbourne were both flat, as Cotality noted a clear pickup in new listings in the month. Advertised stock in Sydney was 9.7% above the five-year average while in Melbourne it was almost 12% higher.
The more affordable end of the markets is delivering more strength, with lower quartile house values in Sydney up 0.8% in the month, while upper quartile fell 0.9%. "First home buyers, investors and subsequent buyers are all competing across this sector of the market," said Lawless, adding credit is less available across the higher price points due to serviceability constraints.
($1 = 1.4213 Australian dollars)
