Australian house prices rise to new high despite rate hike

House prices across Australia have once again risen to new heights, giving homeowners an early Christmas present and defying last month's rate hike.

According to the latest Prop Track Home Price Index, the national median home price rose another 0.22% in November, hitting a new all-time high, but the pace of growth slowed as more properties came on the market. .

Property prices reached new highs in regional areas of Queensland, South Australia and Western Australia, as well as Sydney, Brisbane, Adelaide and Perth.

Eleanor Cree, senior economist at Prop Track, said while the influx of new properties was increasing, demand for housing was maintaining its pace.

“Strong housing demand, supported by record net overseas migration, a tight rental market, low unemployment and rising housing equity, combined with limited housing inventory, offset the impact of higher interest rates this year. ''Cree said.

All capital cities except Darwin recorded price increases last month, led by Perth, where house prices rose 0.74% month-on-month.

How did housing prices change across the country in November?

sydney

Sydney is at the forefront of Australia's housing market resurgence, not only reversing the losses seen in 2022 but also 1% above its previous peak in February 2022.

Prices fell 6.8% from February 2022 to November 2022, but then rose for 12 consecutive months, rising 8.4% from the November 2022 low.

Breathick Whitney chief executive Thomas McGlynn said the Sydney market had been very resilient despite the uncertainty surrounding interest rates.

“More properties came on the market this year, especially towards the end of the year, but it still wasn't enough to keep up with buyer demand,” he said.

“I think it was primarily the availability of real estate that drove this increase over the year.”

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But McGlynn said buyers are starting to show a little more caution.

“Prices are still very fair. Buyers are a little more cautious in how they negotiate, but they still want to secure a great property,” he said.

melbourne

Melbourne's housing market has seen some gains, with house prices increasing by a modest 0.04% in November, but rising by just 1.39% over the past 12 months.

Despite this growth, Melbourne's property market remains 3.71% below its March 2022 peak, lagging behind the price recovery seen in Sydney and other cities.

Melbourne house prices have increased by 1.39% over the past year to a median price of $807,000. Photo: realestate.com.au

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Melbourne house prices have increased by 1.92% since bottoming out in January 2023, putting Melbourne ahead of Hobart in terms of the pace of recovery and showing slow but steady improvement in the city's property sector. ing.

brisbane

Brisbane house prices have rebounded from last year's price decline, with house prices rising 0.20% in November to a new high.

Prices are currently up 8.85% from a year ago and 8.91% since the beginning of the year.

Harcourts Queensland chief executive officer Mitch Peelboom said Brisbane offered a popular lifestyle for a variety of people.

“Over the past 12 months there have been fewer listings on the market and fewer options,” he said.

Brisbane's median house price is currently $775,000. Photo: realestate.com.au

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“However, buyer interest in capturing the Brisbane lifestyle remains strong, resulting in increased competition and clearly driving up sales prices.”

Mr Pierreboum said sellers were putting their homes on the market with confidence because they knew Brisbane was looking for buyers.

perspective

Perth was the strongest market in the country in terms of annual growth rate, increasing by 12.76% year-on-year.

Home prices rose 0.74% in November, marking the 17th consecutive month of increases and hitting a new high.

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Ben Keevers, principal of Ray White Keevers Group in Perth's North Beach district, said the city's lifestyle, relative affordability and tight rental market were supporting home values. .

“Compared to other capital cities around Australia, Perth remains a great value city,” he said.

“I think there’s still a lot of value in Perth, especially compared to the east coast.”

adelaide

Adelaide house prices rose 0.34% month-on-month in November, also hitting a new high.

Adelaide stands out as a major city in the national property market, with house prices increasing by 9.74% annually.

The city's relatively affordable housing market has remained resilient to rising interest rates, contributing to its strong performance.

Additionally, the limited housing stock available in Adelaide increases competition.

Canberra

Canberra house prices rose 0.32% month-on-month and were 0.97% above last November's levels.

Canberra prices are still 4.49% below their March 2022 peak, despite recovering 2.35% since hitting their low in February 2023.

hobart

House prices in Hobart increased by 0.03% last month. Hobart house prices have fallen by 2.92% over the past 12 months, following strong growth during the pandemic and several years of better performance.

Hobart house prices have increased by 37.93% since March 2020, despite falling prices over the past year. Photo: realestate.com.au

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For context, Hobart house prices have soared by 37.93% since March 2020.

darwin

In Darwin, house prices fell by 0.12% in November and by 1.75% over the past year.

Darwin did not see a recovery in prices in 2023, but 2022 did not see a significant decline. Darwin house prices in November were still 24.9% higher than in March 2020.

What will happen to housing prices in the future?

Despite interest rates rising again in November and the flow of properties being listed on the market increasing, demand for housing remains strong and national prices have now risen for 11 consecutive months, Cree said. Stated.

“Meanwhile, rapidly rising construction costs and shortages of labor and materials are delaying the delivery of new construction and hampering the supply of new homes,” she said.

“We expect prices to continue rising as tailwinds to housing demand and a slowdown in new home completions counter a sharp deterioration in affordability and economic slowdown.

“However, the rate of price growth is likely to be slower than in 2023 as a whole.”