Rebound sends prices back beyond $1m, latest CoreLogic figures show

A surge in Sydney and Melbourne property prices is likely to push the national median above its 2017 peak within weeks.

Katherine Valderrama at her Sydney home, which she and her husband are hoping to sell for more than $1m. Picture: John Feder

The median house price in Sydney has again broken the $1m mark — first reached during the highs of the 2017 property boom — as five cities move into record territory.

Melbourne, Brisbane, Adelaide, Hobart and Canberra last month set records for median house prices driven by unprecedented demand on the back of tight supply and low interest rates, which could be cut again on Tuesday by the Reserve Bank.

Monthly home value data from property researcher CoreLogic, released on Monday, shows the Sydney market is now heading towards record territory.

Overall, median prices across the nation were up 1.1 per cent last month. Analyst said if growth continued at its current pace, then values would surpass 2017 peak prices within eight weeks.

According to the CoreLogic data, Sydney prices surged 1.7 per cent last month, pushing the ­median price for houses beyond $1m. Growth of 1.2 per cent in Melbourne saw the market reach a high, with median prices for houses now at $809,719.

Hobart has been at the peak of its cycle since the beginning of last year, growing a further 0.8 per cent through February, alongside Canberra.

Modest growth was also recorded in Brisbane, where prices were up 0.6 per cent, and Adelaide, where they rose 0.1 per cent.

Despite Australia’s weak economy and fears about the coronavirus weighing on the minds of investors, property prices are tipped to remain largely resilient, with room for further growth throughout 2020, CoreLogic’s head of research Tim Lawless said. Sellers have come back to the market, with the number of homes being listed expected to rise over the next few months, ­especially now prices have cracked seven figures.

It is what Katherine Valderrama, 27, and Darren Spiteri, 36, had been waiting for. Their six-bedroom property in the northwest Sydney suburb of Riverstone was valued last April at $950,000. After deciding to wait, they will be launching an auction campaign in the coming weeks, chasing offers of more than $1m. “The market had quite a big drop and people just weren’t buying,” Ms Valderrama said. “So we just waited and now seemed like a better time. Prices could go higher from here but we didn’t want to be greedy.”

Ray White Castle Hill’s Sara Perry and Karl Anthony will market the Boydhart Street property.

Last week, the ASX tumbled $210bn in value as investors were scared off by coronavirus fears. The sell-off saw the market close on Friday with a 9.7 per cent loss — the worst weekly loss since the global financial crisis of 2007-08.

Experts have said an anticipated Reserve Bank cut to interest rates on Tuesday is unlikely to have an impact on the property market, particularly if the banks fail to pass on the cut in full.

AMP chief economist Shane Oliver said the virus outbreak, combined with other economic brakes such as stagnant wages, was unlikely to bolster prices.

“Particularly in the last week … coronavirus has made the outlook for the economy and the housing market a lot messier. This is why suddenly there’s talk about a big rate cut,” he said.