Home prices are now 5.62% higher compared to the previous year
National home prices in Australia hit a new record in October, a new report by PropTrack found.
According to its Home Price Index report for the month of October, national home prices rose by 0.26% over the month, making it 5.2% higher than the findings recorded from the previous year. REA Group senior economist Eleanor Creagh (pictured) pointed out how buyers were “out in force” for the spring selling season.
“Though price growth had been slowing, the stronger October rise of 0.26% marks the 22nd consecutive month of growth. It's clear [that] resilient housing demand is defying persistent affordability restraints,” said Creagh.
The prices in the combined capital cities notably increased by 5.85% over the previous year and rose further by 0.28% in October. However, the performance of prices was still mixed across Australia.
Melbourne’s prices rose by 0.49%, which was the highest monthly growth rate among the capitals. This was followed by Adelaide and Perth which recorded an increase of 0.43% and 0.32%, respectively. Perth, Adelaide, and Brisbane were also found to be the strongest capital city markets for annual growth as prices rose by 20.58%, 14.91%, and 12.51% over the past year, respectively.
“Although price growth regained momentum in October in every capital except Brisbane, Adelaide and Darwin, it was slower than at the end of the summer selling season, as buyers enjoy more choice. Significant regional disparities persist in the pace of growth, with differing supply and demand conditions driving varied performance,” said Creagh.
The economist also pointed out that tax cuts in July had boosted the borrowing capacities and budgets of buyers, which supported the growth that was recorded.
“The persistent rise in home values has also motivated many to overcome affordability challenges and transact,” said Creagh.
“Though home price growth regained speed in October, elevated interest rates and affordability constraints are weighing. Buyers now have more properties to choose from, and uncertainty around the timing of interest rate cuts remains. Still, prices are expected to remain on the rise as the busier selling season closes out,” she added.
