AUSTRALIAN home prices boasted a bumper 2021 as rock-bottom interest rates drove values sky-high, with values in Sydney alone rising an average of A$4,200 (US$3,029) every single week.

Figures from property consultant CoreLogic out yesterday did show some heat leaving the market as national home prices rose 1 percent in December, compared to 1.3 percent in November and a peak of 2.8 percent early in the year.

Prices were up 22 percent for the year, with a 26 percent jump in the regions outpacing a 21 percent increase for the state capitals amid a shift toward country living.

Sydney added only 0.3 percent in December, although that still brought its gains for the year to 25 percent and produced a median home value of almost A$1.1 million.

Melbourne saw a rare dip of 0.1 percent in December, but Brisbane surged 2.9 percent and Adelaide 2.6 percent.

The boom has been a windfall for household wallets and consumer confidence. The Australian Bureau of Statistics estimates the value of the housing stock surged by a trillion dollars in the six months to September to reach A$9.3 trillion.

The red-hot market finally tempted out sellers in Sydney and Melbourne where listings rose sharply late in the year, contributing to the slowdown in the market.

Still, CoreLogic’s research director, Tim Lawless, noted home sales for all of 2021 were around 40 percent above the decade average at a record 653,000, pointing to strong demand.

“Such a significant mismatch between available housing supply and the level of demand is a fundamental reason why housing prices have risen so sharply,” said Lawless.

(SD-Agencies)