Australian home prices have continued to rebound, lifting 0.3% month-on-month in June, with national prices now just 0.1% lower than they were a year ago, according to the latest PropTrack report.
“The 2023 house price recovery continued in June, despite the Reserve Bank lifting the cash rate for the 12th time since May last year,” said Angus Moore (pictured above), PropTrack economist. “Interest rates will continue to be a headwind for prices, but, unlike in 2022, the peak of interest rates is likely close.”
Moore said that higher interest rates are being offset by a limited flow of new properties hitting the market, as well as strong fundamentals for housing demand.
“While the total number of properties listed on realestate.com.au has picked up compared to a year ago, the flow of new properties hitting the market remains subdued, which is creating a more competitive environment for properties coming to market,” he said.
Across the capitals, prices are now higher than the same time last year, with Sydney taking the lead in price recovery. The city has continued its comparatively strong recovery in June with a 0.6% growth. Sydney prices are now up 4.5% since their trough last year and just 3% below the peak recorded in February last year.
Hobart and Darwin were the only capitals to see price falls last month. Hobart has continued to underperform after strong growth for the past few years, with prices now 7.15% below their peak.
As has been the case for much of 2023, regional areas experienced slower growth than capital cities. Capital prices were up 3% since December, compared to just 0.8% for regional prices. It’s important to note, however, that prices regionally held up better last year, meaning prices haven’t fallen as far as in capitals, PropTrack reported.
Moore said he is expecting price growth to continue in the near term, given strong auction clearance rates and fewer properties hitting the market during winter, and despite the potential for further interest rate hikes.
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