Australian House Prices Extend Gains as Affordability Worsens

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

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

Record-high values may see affordability constraints start to put a ceiling on price growth, said Tim Lawless, research director at Cotality, formerly CoreLogic Inc.

“With housing affordability already stretched and worsening, it stands ...