National home prices reached a new peak in April, marking a 0.23% increase from the previous month. Compared to April 2023, prices have risen by 6.60%.
In the combined capital cities, prices also surged to a new high in April, up by 0.21% from the previous month and 7.19% since April 2023. However, there's significant divergence in performance among the capitals.
All capitals except Melbourne (-0.10%) and Hobart (-0.24%) experienced price increases in April, although the rate of growth has slowed compared to March, except in Darwin.
Perth and Adelaide stand out as the strongest performers, with the fastest monthly growth rates in April, up by 0.83% and 0.55%, respectively. Perth prices have soared by 20.16% over the past year, while Adelaide has seen a growth of 13.99%.
Despite the strong performance of capital cities, regional areas also saw growth, rising by 0.30% in April to reach a new high. Regional NSW (+0.50%), regional WA (+0.33%), and regional Queensland (+0.30%) led the growth.
This marks 16 consecutive months of home price growth, as reported by the latest PropTrack Home Price Index Report. Given the current trajectory, prices are expected to continue rising in the coming months.
Ms. Eleanor Creagh, Senior Economist at PropTrack, noted that while demand remains robust, the pace of price growth is slowing. Stable interest rates have bolstered confidence among buyers and sellers. However, unexpected inflation in the previous quarter has delayed anticipated rate cuts. Despite this, strong population growth, tight rental markets, low unemployment, and home equity gains are driving housing demand.
The supply side of the market, however, has failed to keep up with demand, leading to a housing supply shortage exacerbated by record-low building activity. This imbalance between supply and demand is expected to persist, mitigating affordability challenges and economic deceleration.
State by state, Sydney saw a 0.25% increase in home prices in April, reaching a new peak. Melbourne experienced a slight decline of 0.10%, while Brisbane remained one of the strongest markets with a 0.23% increase in April.
Adelaide's home prices rose by 0.55%, maintaining its position as one of the top-performing markets. Perth continued its streak of outperformance, recording an 0.83% increase in prices in April. Hobart saw a decline of 0.24%, while Darwin experienced a modest increase of 0.17%.
Canberra's home prices remained flat in April, showing signs of a price recovery underway.
In conclusion, while the property market continues to show resilience and growth, it's crucial for investors to navigate these dynamic conditions with expert advice.
At DMC Property Advisory, we offer strategic property advice, buyer's agency services, sales advisory, and portfolio review tailored to your unique needs and goals. Our expert team is dedicated to guiding you through every step of your property journey, ensuring informed decisions and maximising your investment potential.
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