Two high-profile commentators claimed this week that “the house price boom is back”.

Economist and Financial Review columnist Christopher Joye declared: “Prices are rising fast again in Sydney and Melbourne at an annualised pace north of 6% … Pity the perma-bears, because the great Aussie housing boom is back.” Joye says Sydney home values surged “an incredible 1.3%” in August, the biggest jump since March 2017. And Melbourne prices rose 1.2% in August, the best result since May 2017. “Even the subdued Brisbane market has recorded two consecutive months of capital gains,” he says. “Across the five largest cities, home values inflated more than 0.8% in August after a 0.1% gain in July. That makes August the strongest month nationally since April 2017.”

Financial commentator and TV presenter Peter Switzer says: “Data out of the property market resulted in the AFR running with the headline that the RBA’s cheap money is firing up house auctions. “But it’s not just cheap money – banks have now been let off APRA’s tight lending leash and buyers of today have seen the price falls of yesterday and are now going for it.”