House values accelerate as lower rates, policy and supply combine

In Melbourne, house values increased by 0.9 per cent last month to be 4.9 per cent up so far this year. Melbourne’s median house value is just short of $974,000. The largest jumps in house values continue to be in the nation’s smaller capitals. Values rose by 1.9 per cent in Perth, followed by 1.4 per cent in Adelaide and 1.3 per cent in Darwin. October marked the start of the federal government’s 5 per cent house deposit program for all first-time buyers. During the month, commercial banks passed on in full the Reserve Bank’s third interest rate cut to existing mortgage holders. Cotality research director Tim Lawless said there was an ongoing shortage of homes for sale.