BRISBANE home values are on track to record their strongest monthly rise in five years, as the housing market recovery gathers steam, new figures reveal.
Preliminary data released exclusively to The Courier-Mail by property analyst CoreLogic for the first 28 days of October reveal dwelling values in the Queensland capital have increased 0.8 per cent.
That would be the best monthly result since 2014 and the fourth straight month of gains.
It follows a 0.1 per cent increase in values in September, a 0.2 per cent rise in August and a 0.2 per cent in July.
CoreLogic research director Tim Lawless said the recovery in Brisbane home values was being driven by strong population growth, housing affordability and a substantial slowdown in construction activity.
“We can confidently say the (Brisbane) market is in a phase where values are rising,” Mr Lawless said.
But Mr Lawless said he would like to see “a few months of consistently strong performance”.
“Let’s keep in mind it’s only one month (of strong gains),” he said.
“But it’s a hint the market’s starting to respond to all this stimulus.”
Across the five major capital cities, the index is up 1.2 per cent over the first 28 days of this month — the fourth consecutive month of rises since house prices bottomed in June.
Mr Lawless said the improved housing market conditions were becoming more geographically diverse, although Sydney and Melbourne continued to lead the growth trend.
Sydney home values are on track to post 1.5 per cent growth for October, while Melbourne is shaping up to record a rise in values of 2.1 per cent.
“Low interest rates and better access to credit are having a positive effect on growth conditions,” Mr Lawless said.
A subtle rise in home values is expected in Adelaide, while Perth values have continued to trend lower over the month to date.
AMP Capital chief economist Shane Oliver said the boost from the federal election result, RBA rate cuts and the relaxation of the seven per cent mortgage rate serviceability test were driving a bounce in home buyer demand.
Mr Oliver said that was evident in the continuing rebound in auction clearance rates.
Economists are still pencilling in another interest rate cut for November or December.
The final home value index results for October will be released on Friday, November 1.