Australian Home Prices Extend Gains as Affordability Worsens (1)

Australian home prices extended gains in November as demand continued to outstrip supply, a dynamic that could add to inflation pressures and keep the Reserve Bank from cutting interest rates further.

The Home Value Index jumped 1.0% following a 1.1% gain in October, property consultancy Cotality said Monday. Perth led the increases with 2.4%, while Sydney notched 0.5% growth and Melbourne climbed 0.3%.

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Australia’s banking regulator said last week it will tighten mortgage-lending rules to curb a potential build-up of financial stability risks from accelerating credit growth and ...