Australian home prices continued its positive streak in June, capital cities returning to annual home price growth.
This was according to PropTrack’s latest Home Price Index, which clocked a 0.3% month-on-month increase in home prices for July.
On an annual basis, national home prices are now only 0.1% lower than they were a year ago.
Across capital cities, monthly growth in home prices is at 0.4% while the annual growth is now at a positive territory at 0.06%.
Sydney maintained its position as the leader, registering a monthly growth of 0.63%. On an annual basis, home prices in Sydney increased 0.96%.
Over the month, only Hobart and Darwin posted a decline in June.
Over to the regional markets, they continued to record slower growth relative to capital cities.
In fact, prices in capitals are up 3.0% since December, compared to 0.8% for regional areas. That said, prices regionally held up better in 2022, meaning prices have not fallen as far as in capitals.
PropTrack economist Angus Moore said home prices appear to be defying the supposed impacts of the rate hikes that started since May 2022.
“Interest rates will continue to be a headwind for prices, but, unlike in 2022, the peak of interest rates is likely close,” he said.
“Higher interest rates are being offset by a limited flow of new properties hitting the market, as well as strong fundamentals for housing demand.”
Mr Kusher said while the total number of listings started to pick up from a year ago, the flow of new properties hitting the market remained subdued, maintaining the competitive environment among potential buyers.
“With auction clearance rates strong, and fewer properties hitting the market during winter, price growth is likely to continue in the near term, despite the potential for further interest rate increases.”
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Photo by Tourism Australia on Canva.
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