Home prices hit peak after growth spike in | Australian Markets

The latest figures from REA Group-backed PropTrack’s Home Price Index have revealed that the national median home price but again reached a new file high in the month of April, after regional areas and Adelaide noticed their highest month-to-month growth.

Australia’s median home price elevated by 0.2 per cent to $805,000 this month, pushed by 0.3 per cent of mixed growth in regional areas and a additional 0.3 per cent growth in Adelaide as effectively, because the South Australian capital (10.77 per cent) additionally surpasses Perth (9.30 per cent) in strongest annual growth.

Compared to this time final 12 months, prices in capital cities are 3.35 per cent larger and are 4.61 per cent larger in regional areas. Sydney (+0.1 per cent), Brisbane (+0.19 per cent), Adelaide (+0.3 per cent), Perth (+0.1 per cent) and Darwin (+0.15 per cent) home prices all reached their highest factors this month, with Hobart seeing the best drop in growth at -6.7 per cent. Melbourne (+0.25 per cent) and the ACT (+0.2 per cent) adopted in Adelaide’s footsteps to file the very best month-to-month growth in April.

However, Queensland (+0.49 per cent) and South Australia (+0.48 per cent) have been the highest performing housing markets for the month, with New South Wales (+0.24 per cent) and Victoria (0.22 per cent) recording modest rises and Western Australia (-0.11 per cent), Tasmania (-0.04 per cent) and the Northern Territory (-0.08 per cent) all getting into adverse territory.

“While national home prices rose in April, the rate of growth has slowed compared to the first three months of the year. Should interest rates fall in May, we may see the rate of growth pick up again as borrowing capacities
increase and mortgage repayments decline,” Anne Flaherty, REA Group’s Senior Economist and writer of the report, stated.

“The rate of price growth is moderating in outperforming cities such as Perth, Adelaide and Brisbane, while underperformers such as Melbourne, Canberra, and Sydney have started to pick up. This is lessening the divergence in home price growth seen across the country over the past year.”

The knowledge additionally indicated that whereas homes (+0.24 per cent) recorded stronger national growth than models (+0 per cent) over the month of April, annual unit growth did overtake in regional areas (5.34 per cent in comparison with 4.49 per cent for homes).

“With housing affordability a key issue at the upcoming federal election, both Labor and the Coalition have announced policy incentives for first home buyers. As a result, many of these buyers may be biding their time to
get into the market after the election and the launch of these policies,” Flaherty stated.

“Whichever party is elected, the combination of increased first home buyer incentives, lower interest rates, and supply side challenges are expected to contribute to even higher property prices in 2025.”