Home price growth continues, but not because of supply shortage

A widely watched index shows home price inflation continued into April, with Sydney continuing to drive the national average higher.

The CoreLogic RP Data Home Value Index showed capital prices up 0.8
per cent last month to post a 2.5 per cent quarterly and 7.9 per cent annual
Outside the capitals, prices remained fairly stable, with a 0.4 per cent fall
last month and a 1.5 per cent gain over the past year that was only slightly
ahead of consumer price inflation.
Amongst the capitals, the largest market of Sydney was driving all the
gains, with a 1 per cent rise last month, 5.4 per cent quarterly jump and
14.5 per cent annual increase.
Sydney residential real estate prices were now up an average 65.4 per
cent since the global financial crisis (GFC) of late 2008 and early 2009.
Melbourne continued to be a distant second, with a 0.8 per cent monthly
gain and 6.9 per cent annual rise.
Melbourne prices were up 52.3 per cent since the GFC.
All other capital city markets were subdued over the past year, with Perth flatlining
and Darwin property losing value, even though Adelaide and Hobart posted strong monthly rises in April.

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