The figures are out for house prices in capital cities for 2013, and they rose by nearly 10 per cent.
That’s the highest rise in house prices for four years in Australia.
Sydney and Perth led the way with a 14.5 and a 9.9 per cent jump respectively. Melbourne wasn’t far behind, recording an increase of 8.5 per cent for 2013.
Strong house price growth and a recovering stock market throughout the year led to a boost in retail activity as we approached 2014.
Low interest rates and improved housing affordability were the driving factors for consumers to be more willing to part with their income at the cash register.
The housing market really picked up pace in the second half of the year, jumping from 3 per cent in the first six months to more than double at 6.6 per cent in the second half of the year.
RP Data’s senior research analyst Cameron Kusher told The Age the figures were still luke-warm.
“Despite the strongest annual value growth since 2009, the rate of growth was not that startling given the low interest rate environment and the previous successive years in which home values fell,” he said.
“Cumulatively, from peak to trough, capital city dwelling values were down 7.7 per cent prior to this current growth cycle.”
There is expected to be different levels of growth across the different capital cities in the coming year, due to expected rises in unemployment rates and the level of housing affordability in cities where prices have risen the most.
Median house prices in 2013
Sydney rose 14.5% to $655,250
Melbourne rose 8.5% to $563,000
Darwin rose 3.3% to $540,000
Canberra rose 3.5% to $530,000
Perth rose 9.9% to $520,000
Brisbane rose 5.1% to $445,250
Adelaide rose 2.8% to $386,000
Hobart rose 2.2% to $330,000
Capital city aggregate rose 9.8% to $540,000