Aussie home prices hit record high

Moves to make housing more affordable for the average Australian have failed miserably, new research has revealed.

Australian home values have defied skyrocketing interest rates and the cost of living crisis to hit new record peaks.

According to the latest PropTrack Home Price Index data, released on Wednesday, home prices across the country pushed 0.36 per cent higher in October for a new national median home value peak of $759,000.

Home prices have now regained all of their losses in the recent slump bought on by the RBA’s unprecedented rate rises since May 2022.

Annual growth in home values over the past 12 months has now hit 4.54 per cent. Since the start of the Covid pandemic in March 2020, prices in Australia have grown 35.9 per cent.

“Although the volume of new listings hitting the market has risen over the spring selling season, the demand for housing has remained strong, fuelling further home price growth and reflecting the sustained improvement in conditions,” PropTrack senior economist Eleanor Creagh said.

“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy.

“At the same time, dwelling approvals have declined, hitting decade lows earlier this year. The sharp rise in construction costs, compounded by costly delays arising from labour and materials shortages, has slowed the completion of new homes. “Despite a weaker outlook for the economy, population growth is rebounding strongly and this looks set to continue. Interest rates may rise further, but they are likely close to, if not at, their peak. Together with a shortage of new home builds and challenging conditions in the rental market, home prices are expected to rise further.”

In Australia’s capital cities, home values grew 0.37 per cent in May, while in regional areas they grew 0.32 per cent.

All capitals, except Darwin, saw prices rise in October. The smaller capital city markets recorded a stronger pace of growth over the month, led by Brisbane (+0.52 per cent) and Perth (+0.52 per cent). Prices in the combined capital cities set a record high in October and are outperforming regional markets this year. However, the pace of growth in regional markets has increased after lagging much of this year. In October, regional prices rose 0.32 per cent to set a record high, while capital city prices rose 0.37 per cent. Regional Queensland (+0.61 per cent) and regional WA (+0.45 per cent) led regional gains in October, with prices in both markets reaching a new peak.

Australia home prices have hit a new record high.

HOME PRICES IN SYDNEY AND NSW

Sydney’s home prices have hit a record high as the city continues to lead Australia’s home price recovery. PropTrack’s latest Home Price Index has revealed home prices in Sydney rose 0.37 per cent in October, having now recovered from last year’s falls. Despite continued affordability challenges and a potential looming rate hike, Sydney’s home prices are now up 7.62 per cent from a year ago. Sydney’s median dwelling price is now sitting at $1.07m – considerably higher than the rest of the country, with Melbourne’s median sitting at $815,000 and the ACT at $848,000.

Prices in Sydney are now almost one third higher than pre-pandemic levels in March 2020, and have surpassed the previous peak in February 2022 by 0.32 per cent.

MORE on the latest in Sydney and NSW home prices

HOME PRICES IN MELBOURNE AND VICTORIA

Melbourne house prices continue to recover, gaining more than $5000 in the past year — but for many the boon has gone to their bank. PropTrack’s latest Home Price Index released on Wednesday shows the city’s $924,000 typical house value rose almost $2000 (0.2 per cent) in October alone.

It adds to a $5328 total across the past 12 months. But consecutive interest rate hikes in the same period would have cost someone buying that median-priced home an extra $7500 on mortgage repayments than if the cash rate had plateaued last year, leading to an overall loss despite an increase in prices.

MORE on the latest in Melbourne and Victorian home prices

HOME PRICES IN BRISBANE AND QUEENSLAND

Brisbane has led the nation in home price growth over the past month, with values hitting a new record high as homeowners brace for a potential rate hike next week, a new report reveals.

Proptrack’s Home Price Index, released today, shows the city’s unit and house prices combined gained another half a per cent in October to hit a new median price peak of $773,000 — almost as high as Melbourne’s at $815,000 median. That’s the equal biggest increase for the month alongside Perth and the 10th consecutive month of rises — the longest period of growth since the pandemic upturn.

Prices in Brisbane are now 7.4 per cent above their level a year ago and 53 per cent higher than they were before the pandemic in March 2020. “It’s testament to the exceptional outperformance in growth in Brisbane during the pandemic and the continued growth into this year,” PropTrack senior economist Eleanor Creagh said.

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HOME PRICES IN ADELAIDE AND SOUTH AUSTRALIA

Adelaide house prices have climbed almost $3800 in the past month, new figures reveal. The city recorded a 0.51 per cent – or $3795 – increase in its house prices throughout October, according to PropTrack’s latest Home Price Index, taking its median to $748,000.

Unit prices also rose, with the median now $525,000 – up 0.16 per cent, or $839, on the previous month.

For the year, houses prices are up 8.81 per cent, or $60,563, while unit values are 8.46 per cent, or $40,951, higher.

MORE on Adelaide and South Australian home prices

Originally published as Aussie home prices hit record high