The Australian housing market continued its upward trajectory with national home prices marking 16 months of consecutive growth, according to the latest PropTrack Home Price Index for April.
The PropTrack index recorded a modest increase of 0.23% in April, setting a new record high.
Eleanor Creagh (pictured above), senior economist at PropTrack, outlined the current state of the market:
“National home prices lifted 0.23% to hit a new record in April, bringing prices up 1.97% so far this year to sit 6.6% above April 2023 levels,” Creagh said.
This growth is not uniformly distributed, with the combined capital cities experiencing a 0.21% increase, pushing their prices 7.19% higher than last year. Despite overall growth, cities like Hobart and Melbourne saw declines.
According to PropTrack, Perth and Adelaide emerged as standout performers with the fastest monthly growth rates of 0.83% and 0.55% respectively. Perth’s home prices soared by 20.16% over the past year, while Adelaide also saw significant gains.
“Throughout the past year smaller capitals have outperformed, and this trend persisted into April with Perth and Adelaide remaining the strongest performing markets,” Creagh said.
Strong population growth, a tight rental market, low unemployment, and home equity gains continued to drive demand across the nation, Creagh said. However, the supply side has struggled to keep pace, with building activity at its lowest in a decade, exacerbating the housing shortage.
The PropTrack report suggested that while home prices are currently at peak levels, the growth rate might slow down as the market heads into the traditionally quieter winter months.
Despite this, demand remains robust, supported by a stable interest rate environment and ongoing population growth.
“The stable interest rate environment has also been a driver of confidence among buyers and sellers,” Creagh said, indicating a cautiously optimistic future for the housing market.
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