Surprise shift in property market as prices rise in Sydney and Melbourne – even despite cost of living crisis: here’s why
- House prices rose by 0.18 percent in February
- The downturn in the real estate market has come to a halt
- Limited stock has a major impact on prices
Australia’s real estate market has experienced a slight uptick amid skyrocketing interest rates and continued price declines over the past 12 months, according to the PropTrack Home Price Index released Wednesday.
The report found house prices rose 0.18 percent nationally in February, with all capitals except Hobart seeing prices rise.
Adelaide, Sydney and Melbourne all recorded jumps of less than half a percent, with tight inventory levels keeping competition for properties high.
Brisbane, Perth and Darwin all experienced even smaller increases of around 0.1 percent, while prices in Canberra remained unchanged.
PropTrack senior economist and report author Eleanor Creagh said the slight increase is due to limited supply in the market.
PropTrack senior economist and report author Eleanor Creagh said the slight increase in Australian property prices is due to limited stock in the market
A new report shows house prices rose 0.18 percent nationally in February, with all capitals except Hobart seeing prices rise
“The pace has slowed in recent months and now the housing recession has stalled,” she told NCA NewsWire.
“We saw interest rates rising rapidly last year and conditions in the housing market changing rapidly, but one of the big factors right now is stocks.
‘We see much less demand for owner-occupied homes, which we also see in a weakened (buyer’s) confidence.’
Ms Creagh continued that while the latest figures are stable, it is still too early to conclude that the housing market slump is over.
“We know that the number of new listings was exceptionally strong last year, which then declined towards the end of last year and now many sellers are reluctant to put their properties up for sale… limiting supply,” she said. said.
“It is still too early to confidently end the downturn and we certainly see rising interest rates as the main driver at the moment, but there are other factors at play right now and the low supply is being concentrated by interest rates.
The downturn in the Australian property market has stalled, but it’s too early to tell if it’s over
‘The supply continues to weigh on the borrowing capacity, which has now been reduced by about 30 percent.’
House prices in Sydney rose by 0.26 percent in January. That increase continued in February, when prices rose by another 0.36 percent.
Despite the recent stagnation in the downturn, prices have fallen by 6.64 percent over the past year, with NSW’s capital city seeing the biggest declines of any market.
The total number of homes for sale in Sydney has fallen by almost 20 per cent compared to the overall average over the past five years.
In Melbourne, prices are down 5.99 percent over the past 12 months and remain 6.09 percent below their peak in March 2022.
A similar story is evident in the Brisbane market, with prices 3.49% below their peak in April 2022, while prices in Perth are now just 0.24% below their peak.
House prices in Hobart fell 0.29 percent in February and are now 4.09 percent below their peak in April 2022.
Adelaide, the best-performing capital city market of the past year, saw house prices rise to a new peak, rising a further 0.44 percent in February.
