Shock new $50k hit to Aussie homebuyers
Skyrocketing prices are bringing more pain to Aussie homebuyers but relief could be just around the corner.
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Aussie homes have hit a new price peak, in more good news for homeowners.
But there could also be good new for househunters on the horizon, with homes likely to become more affordable in the new year for the average Aussie family.
Amid warnings, homeowners will have to ‘survive’ until 2025, Australian home prices hit a new high during November, according to the latest PropTrack Home Price Index.
According to PropTrack, nationally prices rose a further 0.22 per cent in November, to push values 5.53 per cent higher over the year and 1.29 per cent above their previous peak.
All up values have grown 36.5 per cent since the pandemic, far more than most experts predicted.
The median dwelling value across Australia is now $761,000 – $822,000 for houses, whose value grew 0.26 per cent in November and is up 5.52 per cent annually. For units values rose across the country by 0.03 per cent last month to be up 4.96 per cent over the past 12 months for a median of $635,000, according to PropTrack.
“National home price growth slowed in November, with the spring selling surge increasing choice for buyers,” Eleanor Creagh Senior Economist, PropTrack said.
“Strong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year.
“Despite interest rates climbing again in November and the flow of listings hitting the market increasing, housing demand has remained strong and national prices have now risen for 11 straight months.
“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.
“Looking ahead, price growth is expected to continue as the positive tailwinds for housing demand and a slowdown in the completion of new homes counter the sharp deterioration in affordability and slowing economy.
“However, prices are likely to lift at a slower pace than they have across 2023.”
Overall, the average Aussie home is now around $50,000 more expensive than it was at the start of the year.
However slower price growth rises and expected interest rate falls in 2024, may make it easier for many families to afford a new home than is currently the case.
Inflation is also expected to continue to ease, also freeing up more of the household budget.
SHOCK $80K HIT TO SYDNEY HOME PRICES
Sydney home prices have hit a record high after further growth in November – despite the Reserve Bank whacking borrowers with another interest rate hike early in the month.
PropTrack’s latest Home Price Index released Friday showed the city’s median dwelling price lifted 0.32 per cent over the month.
The median dwelling price is now $1.065m and is higher than the previous peak in February last year – back when the market was in the midst of a Covid-era boom and interest rates were at record lows.
The rise over November was the 12th in a row and means home prices in Sydney are 8.4 per cent higher than they were in November 2022.
This means that the Sydney median dwelling price is about $80,000 pricier than it was the same time last year, in a massive blow to home buyers.
READ MORE for the latest on Sydney home prices
MELBOURNE HOME PRICES HIT BY HUGE SALES
A spring home sale surge with thousands changing hands in November has stalled Melbourne’s property price recovery.
The latest PropTrack Home Price Index released today shows Melbourne’s $917,000 median house value gained less than $500 (0.03 per cent), while the state’s typical $625,000 unit fell $180 (0.02 per cent) in the past month.
The stall is a glimmer of hope for those hoping to buy in the new year, with house prices idling part way through a recovery.
They have now regained about $17,000 (1.94 per cent) since prices bottomed out in December last year, but are still $37,000 (3.94 per cent) below their last peak in March 2022.
READ MORE for the latest on Melbourne home prices
RECORD HIGH: BRISBANE SOUTHSIDE MEDIAN HOME PRICE NOW $1M
Brisbane home prices have defied the November interest rate rise to climb to new record highs, gaining almost nine per cent over the past 12 months.
The latest PropTrack Home Price Index, released today, reveals the city’s median home price gained another 0.2 per cent last month to hit a price peak of $775,000 — closing in further on Melbourne’s $807,000 median.
The report found the city’s southside has boomed more than anywhere else in Greater Brisbane in the past year, with home prices there jumping nearly 12 per cent to reach a median of just over $1 million.
Unit prices outperformed house prices during 2023, with the median unit price increasing 9.2 per cent to $580,000 and the median house price rising 8.8 per cent to $868,000.
READ MORE for the latest on Brisbane home prices
ADELAIDE PROPERTY SOARED PAST MAJOR MILESTONE IN NOVEMBER
In a win for homeowners but a further blow for hopeful househunters, regional South Australia has topped the nation for value growth over the past month.
According to PropTrack’s November Home Price Index, home values increased by 0.84 per cent in regional SA in November. This combined value for both houses and units takes its median to a record $415,000.
Its 12-month performance was also strong, up 10.04 per cent for the year, and the report shows regional values have increased by 56.3 per cent overall since the start of the pandemic.
Adelaide homeowners were also winners, with home values increasing by 0.34 per cent over November to take the median house price to a record $703,000.
READ MORE for the latest on Adelaide home prices
Originally published as Shock new $50k hit to Aussie homebuyers
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