Australia’s two-speed housing boom

I wrote on Monday that Australia’s house price boom appears to be losing momentum, as evidenced by the slowing growth of Cotality’s daily dwelling values index.

Growth in Cotality’s 5-city aggregate index has slowed significantly over the past 10 days, driven by sharp decelerations across Sydney and Melbourne.

The loss of momentum is also reflected in the auction market, where average monthly final auction clearance rates across Sydney and Melbourne have fallen significantly.