There are signs the market may be about to cool.
Data from CoreLogic on Monday showed dwelling values rose nationally by another 1.5 per cent in October to be up by 4.6 per cent over the quarter and by 21.6 per cent over the past 12 months.
In Sydney,house values increased by 1.6 per cent,with the median value now at a record $1.33 million. Over the past 12 months,Sydney’s median house value has climbed by 30.4 per cent.
Melbourne values rose by 1 per cent with the median value at an all-time high of $972,659,a rise of 19.5 per cent over the past year. Canberra’s median value climbed by 1.9 per cent last month to be the second highest in the country at $985,000.
Across all capitals,the median value of a house has soared by 24 per cent over the past year to more than $855,000.
CoreLogic’s research director Tim Lawless said there had been a slight slowdown in overall dwelling value increases,as fundamentals such as income growth and supply started to catch up with the entire market.
“Housing prices continue to outpace wages by a ratio of about 12 to one. This is one of the reasons why first home buyers are becoming a progressively smaller component of housing demand,” he said.