This article is from the Australian Property Journal archive
NATIONAL home prices hit a new record in April, after picking up by 0.23% over the month to a median of $774,000.
According to the latest figures from PropTrack, national home prices are now up 6.60% from April 2023, with combined capitals up 0.21% for the month to a new record of $840,000.
“National home prices hit a new record in April, as strong buyer demand has outpaced the rise in new listings this year. While demand remains robust, the pace of price growth is beginning to slow,” said Eleanor Creagh, senior economist at PropTrack.
“The stable interest rate environment has been a driver of confidence among buyers and sellers. Higher than expected inflation in the March quarter has pushed back the expected timing of rate cuts but most expect that the next move for interest rates will be down although the timing remains uncertain.”
April saw a diverse range of results for the capitals, with prices down 0.10% in Melbourne and 0.24% in Hobart while the remainder saw increases.
Perth led growth over the month at 0.83%, followed by Adelaide at 0.55%, Sydney at 0.25%, Brisbane at 0.23%, Darwin at 0.17% and ACT with a minor increase of 0.01%.
While annually Perth again led price increases at 20.16%, while Adelaide was up 13.99% and Brisbane up 12.82%.
Capital cities have again outpaced regional areas over the year, though the regions rose to a new peak in April, growing by 3.0% over the month and 5.07% for the year.
“Strong population growth, tight rental markets, low unemployment and home equity gains are stimulating housing demand. Meanwhile, the supply side of the housing market has fallen short in responding to substantial demand. Building activity is at decade low levels, exacerbating the housing supply shortage,” added Creagh.
“Despite some easing in population growth, this mismatch between supply and demand is expected to persist in mitigating the downward effects of affordability challenges and a decelerating economy. As a result, prices are expected to remain on the rise in the months ahead.”
