The latest Core Logic report on property prices over August 2019 showed Sydney's property prices climbed 1.6% for the month with Melbourne not far behind at 1.4%.
It wasn't all good news for property prices over August though with Adelaide, Perth, and Darwin posting marginal 0.2%, o.5%, and 1.2% falls respectively.
Overall though the Reserve Bank's decision to cut cash lending rates 25 basis points in June and July 2019 has added to buyers' borrowing power as auction clearance rates also rocketed over August.
The decision of the banking regulator, APRA, to scrap its rule that lenders must assess home loan applications on the basis that the borrower is able to pay back the loan at an interest rate of 7% has also fired up property prices.
Now banks must just use a 2.5% buffer above the loan's actual rate to work out whether a borrower can afford a mortgage or not.
Analysts have reportedly estimated your average home loan borrower could get between $50,000 – $80,000 more from a bank like Commonwealth Bank of Australia (ASX: CBA) or Westpac Banking Corp (ASX: WBC) because of the rule change.
"The rolling quarter saw national values lift by 0.6%; the first rise in values over a three month period since November 2017," commented Core Logic to suggest prices have turned a corner.
This is logical given the monetary and regulatory support given to prop up prices over fear that further falls could put more pressure on an economic slowdown that has grown worse over the last 12 months.
