The Hunter New England area has seen house prices jump around 20 per cent in the previous 12 months to October, data released by CoreLogic on Monday shows.
Meanwhile, units in Armidale have seen the second largest price hike of any LGA in NSW with the average across 86 unit sales showing a whopping 43 per cent jump in cost to a median just shy of $250,000.
Conversely, Armidale's housing price had the smallest jump of four New England LGAs listed in the data, with a 14 per cent rise, while Tenterfield had the largest surge in cost, climbing over 27 per cent to October.
The Armidale Regional Council signalled a housing crisis at its November 24 meeting and will ask the State Government for support to remedy concerns.
Inverell and Glen Innes had similar price hikes on their property markets with Inverell seeing a 20 per cent jump and Glen Innes costs increased by 21.8 per cent.
Homes are spending around 40 less days on market with most homes selling in an average of 62 days, while the number of properties sold has also jumped by 80 per cent on the 2020 figures.
The data also showed the number of sales was a 45 per cent jump on the five year average for the region.
Houses moved at larger volume, but the change in the number of unit sales outstripped the home market easily, jumping up 140 per cent.
CoreLogic research director Tim Lawless says easy access to capital and the ability to work from home has contributed to the record increases.
Of 25 regions analysed, 24 recorded double-digit growth in house prices, while over half saw rises of more than 20 per cent.
Mr Lawless said common key drivers included a shift away from capitals to regional areas, low interest rates and access to credit, higher household savings and relatively affordability housing values compared to capital cities.
"There has been a broad demographic shift where more Australians are prepared to consider housing options outside of the capital cities, which has seen net internal migration rates to regional Australia reach record highs," he said.
"Working from home looks to have some degree of permanency post-COVID and is one of the catalysts of this trend, with more people basing themselves in regional locations to work remotely or balancing office work with home working."
The best performing regional area was the Southern Highlands and Shoalhaven region in NSW, recording an annual growth rate in house values of 35.9%, followed by the Richmond - Tweed region in northern NSW (32.8%) and Queensland's Sunshine Coast, which recorded an annual growth rate of 32.3%.
"The top performing regional areas were all coastal or lifestyle markets generally within a two-hour commuting distance of a capital city," Mr Lawless said.
"These areas fit within the broad trend where demand has surged for lifestyle properties that offer a blend of liveability and commutability."
Mr Lawless said buyers were popping up quicker than properties listed, creating a rush to get into the market.
"This mismatch between available supply and demand has created a heightened level of urgency amongst buyers, generating strong selling conditions where homes are snapped up quickly with minimal levels of negotiation," he said.
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