Spring selling season has arrived and property prices are heating up, with new data showing values jumped 0.28 per cent in August.
According to PropTrack, national prices are 2.64 per cent higher than a year ago and up 3.51 per cent so far this year.
Sydney continues to lead Australia’s home price recovery, with prices increasing a further 0.47 per cent in August, marking a 6.19 per cent increase from their lows in November 2022.
Prices in the Harbour City are now just 1.29 per cent below their peak recorded in February 2022.
Adelaide (0.64 per cent) led gains for the month, followed by Sydney (0.47 per cent) and Perth (0.31 per cent), while Brisbane (0.27 per cent), Hobart (0.27 per cent) and Melbourne (0.15 per cent) also posted gains.
All capitals, except Darwin (down 0.38 per cent), saw prices rise in August, while regional areas experienced modest growth at 0.09 per cent.
PropTrack Senior Economist, Eleanor Creagh said August marked the eighth consecutive month of national home price growth.
“This is the longest period of consecutive monthly growth since the pandemic boom, when prices rose for 23 months straight between May 2020 and March 2022,” Ms Creagh said.
“National home prices have now regained the majority of price falls seen in 2022.
“For much of this year, stronger housing demand and a limited flow of new listings hitting the market have offset the impact of interest rate rises.”
CoreLogic Research Director, Tim Lawless, said the trend in housing values, although generally positive, is diverse.
He said Sydney and Brisbane have led the recovery in property prices, while some cities have not experienced any growth.
“At the other end of the scale, some other capital cities are better described as flat, with Hobart home values unchanged since stabilising in April, while values across the ACT have risen only mildly, up one per cent since a trough in April,” Mr Lawless said.
“These are also the only two capital cities where advertised supply is tracking higher than a year ago, suggesting a rebalancing between buyers and sellers is a key factor contributing to the stability of values in these regions.”
Prices in Sydney have regained most of the decline in values recorded in 2022, after falling 7.04 per cent from February to November 2022 according to PropTrack.
In Brisbane, values have regained 2022’s price falls entirely and hit a price peak last month.
Brisbane prices are now 4.19 per cent above their level a year ago and up 5.44 per cent over the year-to-date.
Adelaide continues to show strength in their local market, with home prices up 0.64 per cent and 6.07 per cent year-to-date.
Adelaide continues to be one of the country’s top-performing markets and, as a result, home prices are now sitting 7.41 per cent above their August 2022 levels.
Price growth hasn’t been quite as strong in Melbourne, with prices 4.57 per cent below their peak in March 2022.
Home prices are up 1.32 per cent from their low point recorded in January 2023, meaning the price recovery in Melbourne is lagging Sydney, but ahead of the recovery seen in Hobart and Canberra.
Meanwhile, prices in Perth have remained robust, rising 6.22 per cent, after rising 0.31 per cent in August to a new peak.
Home prices in Perth are up 7.57 per cent from their level a year ago, making Perth the strongest-performing capital city market over the past year.
While the strength across the market has been pleasing, Mr Lawless said that there are still headwinds for prices.
“Rising stock levels will be one of the most important factors to watch over the coming months,” he said.
“The past two months has seen a subtle rise in total listings in some regions which has supported a deceleration in value growth.
“Spring and early summer have historically been more active months for property listings and if the winter months are anything to go by, the spring selling season is likely to be more active than last year.”
He said sales volumes are also low, indicating buyers haven’t returned to the market fully.
“The recovery trend has occurred against a backdrop of relatively thin levels of purchasing activity,” Mr Lawless said.
“Buyers continue to face hurdles in accessing the housing market especially from a credit perspective.”
