Australia's house prices have had the biggest spike in 17 years this month, a surge likely to impact housing affordability across capital cities.
According to CoreLogic's national home value index, there was a 2.1 per cent jump in home values across the country in February, the biggest month-on-month surge since August 2003.
Sydney and Melbourne had the biggest increase of 2.5 per cent and 2.1 per cent respectively, followed by Canberra with a 1.9 per cent rise.
Over the quarter, house prices in Canberra have risen 3.7 per cent. That is higher than the rise in Sydney and Melbourne of 3.6 and 3.5 per cent respectively over that period.
CoreLogic research director Tim Lawless said with the current rate of appreciation, "it won't be long before Australia's two most expensive capital city markets are moving through new record highs".
"With household incomes expected to remain subdued and stimulus winding down, it is likely affordability will once again become a challenge in these cities," he said.
Mr Lawless said the rising prices were spurred by record low mortgage rates, government incentives and improving economic conditions.
He said the growth of 2 per cent across capital cities and 2.1 per cent in the regions, had not been seen for more than a decade.
"The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand."
According to CoreLogic data, regional areas recorded less of a decline in house prices during the worst of the pandemic but had stronger growth towards the end of 2020.
House prices grew at three times the rate of units, up 4.4 and 1.4 per cent respectively in the past three months.
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