(Bloomberg) --
Australian home prices rose for the first time in six months in October, as the coronavirus was brought under control and record-low interest rates spurred buyers.
House values in major cities rose 0.2% last month, CoreLogic Inc. data released Monday showed. Prices gained in every capital city except Melbourne, which only emerged from a strict three-month lockdown on Oct. 28. Even so, since home inspections were once again allowed in Melbourne, new listings have surged and buyer activity is recovering, CoreLogic said.
“It is clear that housing markets are responding to the stimulus of low mortgage rates and improved sentiment related to measures announced in the federal budget and the low number of
new virus cases,” said Tim Lawless, head of research at CoreLogic.
Read more: Australian Housing's Resilience Buoyed by Cheap and Easy Credit
Australia on Sunday recorded its first day with no local cases of coronavirus transmission since June even as a growing number of other countries impose renewed measures to stem the resurgent pandemic.
The property market may get a further boost with the central bank expected to cut rates to a fresh record low Tuesday.
“Record low mortgage rates are a key factor supporting housing market activity,” Lawless said. “If mortgage rates move to new record lows, we expect this will further incentivize home purchasing activity.”
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