A surprise lift in inflation will force the Reserve Bank board to consider another interest rate rise as early as next week.Credit:Bloomberg
But CoreLogic data released on Thursday showed house values in every capital city lifted last month,led by a 2.1 per cent jump in Sydney where the median value climbed to almost $1.3 million.
In Melbourne,house values increased by 0.9 per cent to $911,000 while they lifted by 1.5 per cent in Brisbane to $792,000.
Overall dwelling values increased 1.2 per cent in the month to be 2.3 per cent up over the quarter.
CoreLogic’s research director Tim Lawless said buyers were chasing a small number of properties,putting upward pressure on prices.
“With such a short supply of available housing stock,buyers are becoming more competitive and there’s an element of FOMO creeping into the market,” he said.
Lawless said the number of properties for sale was down to levels last seen in 2007. Rental property listings in the nation’s capital cities are 36 per cent down on their five-year average levels.
Lowe said the best way to bring down rents and house prices was “supply,supply,supply” but he also noted people would likely need to “economise” on their property choices.
He said that could mean bringing in an extra flatmate or moving back in with their parents.
“As rents go up,people decide not to move out of home,or you don’t have that home office. We need more people,on average,to live in each dwelling,” he said.
His comments prompted criticism from housing groups.
Everybody’s Home spokesperson Maiy Azize said young Australians were already spending a record period of time at home because they could not afford their own property.
Lowe used what could be his last appearance before a parliamentary committee to reject suggestions from some economists that theMay federal budget was adding to inflation and higher interest rates.
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Treasurer Jim Chalmers’ budget contained a $3.6 billion cost-of-living package to help low-income earners deal with high energy prices. It also contained billions of dollars to cover a 15 per cent increase in wages for aged care workers.
Lowe said the electricity package would reduce inflation by 0.75 percentage points,while also reducing inflation expectations.
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