- Nationwide housing prices at historic highs
- Prices 6.16 percent higher than a year ago
National home prices have hit a new record after posting 20 consecutive months of growth, and sellers have entered the spring with a strong lead.
The home price index from real estate appraiser PropTrack revealed that national home prices are now 6.16 percent higher than a year ago, after rising 0.22 percent to a new peak in August.
The report found that prices in the combined capitals rose by 6.49 per cent over the past year, with “strong population growth, tight rental markets and gains in house values” driving demand.
Prices in the combined capitals rose 6.49 per cent over the past year, after rising 0.25 per cent in August.
But these rates varied depending on the capital city: the highest growth was recorded in Perth (+0.79 percent), Hobart (+0.63 percent) and Adelaide (+0.45 percent).
House price growth during the winter months slowed in Sydney, although prices rose by 0.32 per cent.
Melbourne prices fell 0.18 percent, marking the fifth consecutive month of decline.
The report also found that construction activity remained problematic, compounded by a chronic housing shortage.
National home prices have hit a new record after posting 20 consecutive months of growth, and sellers are entering the spring with a strong lead (file image)
The home price index from real estate appraisal firm PropTrack revealed that national home prices are now 6.16 percent higher than a year ago, after rising 0.22 percent to hit a new peak in August (file image)
“By supporting price growth, the July tax cuts boosted borrowing capacity and buyers’ budgets, while persistent house price growth is likely motivating many to overcome affordability challenges,” said Eleanor Creagh, senior economist at PropTrack and author of the report.
‘As a result, housing demand remains strong, defying affordability constraints and pushing up prices across much of the country.’
Home prices are expected to rise as activity picks up in the spring selling season, but this is offset by “the expected surge in the election, uncertainty around interest rate timing.”
‘rate cuts and affordability restrictions,’ Ms Creagh said.
“They are likely to slow the pace of price growth,” he said.
Perth, Adelaide and Brisbane have seen the fastest growth rates of any capital city for much of the past two years, with prices in Perth increasing by 23.24 per cent last year.
They were followed by Adelaide (+15.12 percent) and Brisbane (+13.95 percent).
Growth was not limited to regional areas either: the report found that prices outside capital cities rose 0.16 percent on the month, to stand 5.32 percent above August 2023 levels.
Western Australia and Queensland led growth in August and over the past year with +0.41 percent and +0.26 percent respectively.
But regional prices in Victoria fell by 1.74 per cent over the same period.
Ms Creagh said tax cuts from July had boosted borrowing capacity and budgets, and noted that persistent house price growth was likely motivating people to overcome affordability challenges.
“As a result, housing demand remains strong, defying affordability constraints and pushing up prices across much of the country,” he said.
