For the first time, Australia’s median home value has climbed to $800,000, marking a new milestone in the nation’s property market.
According to REA Group senior economist Eleanor Creagh (pictured above), national home prices rose by 0.15% in November, pushing values 5.53% higher than a year ago.
Despite this growth, the pace of price increases has slowed compared to earlier in the year. Creagh attributed the moderation to a surge in properties for sale, which has eased buyer urgency.
“Australian home prices hit a new peak in November after 23 consecutive months of growth,” she said. “While housing demand has remained resilient to persistent affordability constraints, we have seen the pace of home price growth slow since earlier in the year.”
Capital city markets posted varied performance in November. Hobart (+0.43%) and Adelaide (+0.40%) led the monthly gains, with Brisbane and Canberra following at 0.28%.
On an annual basis, Perth (+18.74%), Adelaide (+14.64%), and Brisbane (+12.56%) have emerged as the strongest performers.
Combined capital city prices increased by 0.11% in November and are 5.55% higher than a year ago. However, regional markets are now driving growth.
Regional markets outpaced capital cities in November, with prices rising 0.26% compared to the capitals’ 0.11%. Regional South Australia (+1.06%) and Tasmania (+0.65%) led the gains, while regional Victoria lagged, seeing prices fall by 0.05% in November and 2.09% over the year.
“The increase in properties hitting the market this year has been met with strong demand, but increased stock for sale has been a contributor to slowing price growth, along with affordability constraints and the sustained higher interest rate environment,” Creagh said.
While affordability constraints and higher interest rates may keep price growth moderate, Creagh predicts continued, albeit slower, increases in home values in the near term.
“In the period ahead, home prices are expected to lift, though the pace is expected to remain softer trailing the strong growth in prices over recent years,” she said.
Download the latest PropTrack Home Price Index here. To compare with the same period last year, click here.
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