Sydney leads soaring australian house prices

Photo credit: 8LettersUK

Prices climbed in almost all of the country's capital cities in the second quarter of 2014, according to Australian Property Monitors.

"Most capital cities are maintaining or exceeding the solid to strong prices growth levels recorded during the previous quarter," Dr Andrew Wilson told The Australian.

"Other leading indicators of housing market activity such as home loan activity and auction clearance rates point to continued solid buyer activity through 2014."

Canberra was the only capital city to see house prices dip, by 0.5 per cent to a median of $576,000. On average, though, all capital cities have seen values surge almost 11 per cent in the last 12 months.

Melbourne enjoyed a rise of 10 per cent growth, but Sydney is far out in front, with prices jumping 17 per cent year-on-year - more than $110,000 - to reach their new peak.

Now, banks heave leapt into action to encourage buyers in an increasingly expensive market. Indeed, three of Australia's largest lenders have slashed fixed rates to less than 5 per cent, the lowest they have been in years.

“There’s probably more competition today than there’s been in many, many years - some people would say many decades,” Clive van Horen, General Manager of Home Loans for Commonwealth Banks, told the Sydney Morning Herald.