Australian home values have risen 1.6 per cent over the past month, but growth is slowing as housing becomes less affordable.
CoreLogic data shows the value of homes across the country rose 1.6 per cent in July.
Over the past year, the national home value index has increased 16.1 per cent, representing the fastest annual growth since February 2004.
While the market may be strong, CoreLogic's research director Tim Lawless say it is also losing steam.
"With dwelling values rising more in a month than incomes are rising in a year, housing is moving out of reach for many members of the community," he said on Monday.
Monthly growth had been trending lower since March, when the national value index rose 2.8 per cent.
Mr Lawless said demand was driven by low mortgage rates and the prospect interest rates would remain low for some time.
The continued mismatch between demand for and advertised supply of housing kept pushing prices higher.
Sydney's homes recorded the sharpest reduction in price appreciation, falling from 3.7 per cent in March to two per cent in July.
"Worsening affordability is likely a key contributing factor in the slowdown here, along with the negative impact on consumer sentiment as the city moves through an extended lockdown period," Mr Lawless said.
Regional housing values remain strong, with conditions in the first seven months of 2021 nearly equal to the growth in the second half of least year.
Combined regional and capital markets values are up 14.5 per cent and 14 per cent, respectively, so far this year.
CORELOGIC NATIONAL HOME VALUE INDEX FOR JULY
(month, annual)
National - up 1.6 per cent per cent, up 16.1 per cent
Sydney - up 2 per cent per cent, up 18.2 per cent
Melbourne - up 1.3 per cent, up 10.4 per cent
Brisbane - up 2 per cent, up 15.9 per cent
Adelaide - up 1.7 per cent, up 15.7 per cent
Perth - up 0.3 per cent, up 10.8 per cent
Hobart - up 1.7 per cent, up 21.9 per cent
Darwin - up 1.7 per cent, up 23.4 per cent
Canberra - up 2.6 per cent, up 20.5 per cent
Combined capitals - up 1.6 per cent, up 15.1 per cent
Combined regional - up 1.7 per cent, up 19.6 per cent
(Source: CoreLogic)
