The PropTrack Home Price Index for July revealed a modest national home price increase of 0.08%, marking the slowest monthly growth since late 2022.
PropTrack senior economist Paul Ryan (pictured above) attributed this to seasonal factors.
“The slowdown in price growth is not unexpected; it coincides with continued strong listings activity and July is the seasonally weakest month for home price growth,” Ryan said.
Despite the slower pace, national home prices have risen 6.3% over the past year, reaching a new peak.
See LinkedIn post here.
Capital cities continued to outperform regional markets, with a combined increase of 0.15% in July, resulting in a 6.6% rise over the past year.
Perth led the growth with a 0.88% increase, followed by Adelaide at 0.58% and Brisbane at 0.34%.
Ryan highlighted the ongoing demand in these cities.
“Relative affordability and lifestyle factors continue to drive housing demand in these cities,” he said.
While regional areas saw a slight decline of -0.12% in July, certain regions, like regional Victoria, experienced more significant decreases.
“Slower price growth in regional areas has been the norm after exceptional increases during the pandemic,” Ryan said.
Melbourne saw its fourth consecutive month of price declines, albeit modestly at -0.21% for July.
However, Ryan pointed out, “This broad price stability has helped buyer and seller confidence in Melbourne.”
Conversely, Sydney recorded a 0.12% increase in July, bringing its annual growth to 6.1%, despite affordability challenges.
Affordable markets, particularly in Perth, continued to show strong price growth.
“More affordable regions have tended to perform the best, driven by challenged affordability from the continued high-interest-rate environment,” Ryan said.
The PropTrack report suggested that while price growth has slowed, strong housing demand and tight rental markets persist. Differences in affordability and home construction rates continue to drive regional variations in outcomes.
“We expect further modest rates of home price growth over the coming months as the market moves into the traditional spring selling season,” Ryan said.
Buyers and sellers will be closely monitoring interest rate decisions, with potential rate hikes in August potentially impacting the market’s trajectory.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
