Growth in house prices across Australia’s major cities appears to have moderated over the past few weeks as the recently announced tightening of regulatory measures takes hold.
Prices for the combined capital cities rose 10.2 per cent in the year to May 7, according new data from market information company CoreLogic.
That compares to the 12.9 per cent annual rise at the end of March, the highest yearly growth rate since mid-2010.
Capital city home prices have now risen 3.7 per cent since the start of 2017.
Meanwhile, the auction clearance rate of 74.6 per cent last week, was up from 70 per cent the previous week and from 67.7 per cent for the same time last year.
But while that appears a strong result, CoreLogic says the trend is softening.
“While clearance rates remain above the long-term average across the largest capital cities, the rolling four-week average reveals a softening trend which can be attributed to Sydney’s final clearance rate drifting lower over the past two months,” CoreLogic said.
The banking regulator capped interest-only mortgage lending in March, telling lenders to limit higher risk interest-only loans to 30 per cent of new residential mortgages.
The measures have resulted in a slight easing in clearance rates in recent weeks, while approvals for construction of new homes fell 13.4 per cent in March, separate data showed on Monday.
The number of homes up for auction activity was down from a year ago, with 1,662 auctions held in the week compared to 2,230.
Melbourne had the highest auction clearance rate, at 78.4 per cent, with Sydney close behind at 77.8 per cent.
The median price for homes in Sydney was $972,500 and for apartments was $730,000.
Melbourne homes had a median price of 690,000, while apartments came in at $547,250 each.