House prices have jumped 3.3 per cent in the June quarter which is the strongest quarterly growth recorded in house and unit prices since December 2007.
These figures were released in the latest Australian Property Monitors Quarterly Housing Data report, which stated that Brisbane and Perth were the only markets with both house and unit median prices at less than June 2008 levels.
The Australian has reported that the Sydney market was one of the biggest movers, with the median price rising 3.7 per cent, the first quarter of median price growth for houses since December 2007. The rise brings house prices back to the level of June last year.
Darwin was the strongest market nationally, with the annual rises for houses and units up by nearly 20 per cent. Melbourne recorded the next biggest rise in median house prices up 5.8 per cent in the June quarter.
APM economist Matthew Bell stated that the consolidation that began in the March 2009 quarter has now transformed into strong growth across the country.
Mr. Bell felt that while low interest rates, flat prices and first home owner grants supported the affordable end of the market through the end of last year and earlier this year. The upper end of the market has driven the strong growth in the major capitals in the June quarter.
In Sydney, Melbourne and Brisbane the median prices in the top 50 per cent of suburbs grew by nearly double the rate of the bottom 50 per cent.
A report prepared by RP Data showed that the number of suburbs where it was cheaper to service a monthly mortgage payment than pay rent rose from 74 to 94 in the past six months reflecting a 27 per cent rise.