APM: House prices rise by 5.4%

APM reports that house prices have increased...well, everywhere, over the 12 months to June.

While gains have been predictably weak in Adelaide and Hobart, house prices have increased very strongly in Perth (+7.5%), Sydney (+6.7%), Darwin (+5.7%) and Melbourne (+6.1%).

Median house prices are now at record highs in Sydney, Perth and Canberra, and even Melbourne is now only a fraction (-1.4%) below its previous peak. 

Therefore, the 'bull trap' theory - that prices would fade before returning to previous heights, thereby suckering new buyers - has failed to materialise in these cities.

Prices in Sydney look likely to continue growing with properties selling very quickly on average and the city recording scorching auction clearance rates in July.

Source: APM

APM also shows unit prices up strongly in Sydney (+4.9%), Perth (+9.3%), Melbourne (+4.2%) and Darwin (+10.3%) over the 12 months - but down in Adelaide and Hobart.

Sydney unit prices are also at new record highs this quarter.

This leaves the "Don't Buy Now" campaign which has been ongoing over the past few years in something of a sticky spot - how long are prospective buyers to be instructed to boycott buying a home while waiting for the promised major house price correction? 

Of course, prices can always fall, but second-guessing markets in this manner can be a dangerous game to play.

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