Housing prices at new record highs post-pandemic, according to new PropTrack data

The price falls of 2022 have been reversed after September marked the ninth month of consecutive gains, taking the national real estate market to a new high.

National home prices surpassed pandemic highs through September to hit a record, with no signs of reversal on the horizon.

All the near 5 per cent price falls encountered through last year have been reversed after nine consecutive months of price rises, according to latest PropTrack Home Price Index released on Sunday. Prices nationally were up 0.35 per cent, with all capitals ­except Darwin rising.

Adelaide, Brisbane and Perth are at peak prices, with Sydney just 0.3 per cent away from reaching pandemic heights.

Despite the number of homes for sale increasing as the weather warms, PropTrack senior economist Eleanor Creagh said the general lack of housing combined with higher migration is squeezing the market and outweighing the impacts of interest rate rises.

“The spring selling season experienced a busy start in September,” Ms Creagh said.

“Buyer and seller confidence is on the up and choice is improving significantly in the major capitals.

“Despite the uplift in the number of properties coming to market, national home prices have moved higher again, regaining 2022’s rapid price falls in entirety to reach a record high in September.

“Home price growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage. While a sharp increase in the number of properties hitting the market in Sydney and Melbourne has been improving choice for buyers, strong demand has seen prices continue to lift.”

Capital city pricing is at a high after gaining 0.41 per cent in September, while the regions are still lower than the pandemic-induced “space race” peak despite a 0.18 per cent lift.

The highs are increasingly ­affecting housing affordability, with a recent report from PropTrack revealing the average Australian household able to afford just 13 per cent of the market – the worst result in three decades.

The median cost of a property in Sydney is now $1.057m after prices rose another 0.48 per cent last month.

However, the country’s second largest market, Melbourne, is still sluggish to react to changed conditions after bearing the brunt of the post-pandemic slump. Prices are still 4.27 per cent below pandemic highs, with home costs rising 0.25 per cent last month.

Ms Creagh said buyers still had limited choice in the smaller capitals, which was helping to push up prices. Perth led price gains last month, up 0.71 per cent, followed by Adelaide (up 0.48 per cent) and Brisbane (up 0.39 per cent). ACT gained 0.41 per cent, Hobart was up 0.09 per cent, while Darwin slipped 0.01 per cent.

PropTrack anticipates the ­Reserve Bank to hold fire on another rate rise when the board meets again on Tuesday for the first time with new governor ­Michele Bullock at the helm.

“Looking ahead, interest rates have likely peaked and population growth is rebounding strongly,” Ms Creagh said.

“Together with a shortage of new home builds, prices are ­expected to rise. As we head further into spring, more markets are likely to reclaim 2022’s fast falls to set new peaks.”

The total value of Australia’s housing stock again surpassed $10bn after dipping last year.