House prices grow across the country with many cities now at record highs

The median house price in Sydney has tipped back over the $1 million mark, making it the most expensive Australian city.

New data shows Sydney’s property prices have increased by more than 10 per cent in 12 months, bringing the median house price back over $1 million.

New data from property research firm CoreLogic has found that Sydney’s median house price for February was $1,001,357, while the median unit price is now $763,962.

The monthly increase was 1.8 per cent, while prices are up 10.9 per cent in the past year, which may put added pressure on the Reserve Bank ahead of its interest rate meeting today.

The latest figures mean that Sydney is just months away from exceeding the June 2017 housing price peak of $1.1 million.

The situation is similar across the country where house prices increased in every capital city bar Darwin.

Melbourne’s house prices have returned to their mid-2017 peak after a 1.2 per cent rise over the month for a new median of $809,719.

The increase has erased an 11 per cent fall in values since the previous peak.

Prices in Brisbane, Canberra, Hobart and Adelaide have all reached record highs.

In Canberra the median house price is $704,865, in Brisbane it’s $551,766, while Adelaide has reached $477,129 and Hobart $520,201.

Home values also rose 0.3 per cent in Perth last month – the fourth consecutive month of growth – to $458,582.

Darwin was the only capital city where house prices fell over the month, a drop of 1.4 per cent. Darwin’s median house price is the cheapest in the country at $469,526.

CoreLogic head of research Tim Lawless said the primary factors driving the rebound included an extremely low cost of debt and improved borrowing capacity.

“However, considering the sluggish pace of household income growth, housing affordability is eroding rapidly, which is likely to see some parts of the market become less active,” he said.

The coronavirus is also expected to have an impact on the market as consumer sentiment erodes as a result.

“While housing demand is now relatively insulated from a downturn in foreign buyers, the economic impact on key export sectors such as education, tourism and commodities is likely to result in weaker economic conditions and lower consumer sentiment,” Mr Lawless said.

“Consumer sentiment readings are already low, and a further deterioration could see housing market activity start to slow.”