New house price record but surge in listings slows growth – realestate.com.au
The median home price reached $800,000 for the first time in history, despite buyers having a hard time choosing because of the surge of new listings in the spring.
The latest PropTrack Home Price Index released Monday hit a new record in November after nearly two straight years of gains — up another 0.15 percent, or $23,000, for the month, up 5.5 percent from a year ago. .
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But this is a tale of very different markets across the country. Hobart (+0.43 per cent) and Adelaide (+0.4 per cent) recorded the strongest growth of the capital cities last month, followed by Brisbane and Canberra – both up 0.28 per cent.
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Sydney house prices rose a modest 0.08 per cent in November, according to PropTrack. Image: Max Mason-Hubers.
Melbourne's market continued to soften in November, down 0.07 per cent, while Darwin's median house price remained flat.
Perth, Adelaide and Brisbane remain the strongest capital markets for year-on-year growth, with prices rising between 12.5 and 18 per cent over the past year.
Regional markets outperformed capital cities when listings growth in capital cities is taken into account, with prices in the regions increasing by 0.26 per cent over the month compared to one-tenth of a per cent in the capitals.
Brisbane house prices hit a new record high of $868,000 in November. Photo: John Gass.
Regional South Australia was the strongest performer nationally, with house prices up more than 1 per cent in November to $454,000. Regional Tasmania, NSW and Queensland also performed well.
Eleanor Creagh, chief economist at PropTrack, said growth continued to slow despite resilience in the face of continued affordability pressures.
“This softening of growth has been accompanied by an increase in inventory for sale, giving buyers more choice and reducing the urgency of transactions,” Ms Creagh said.
Eleanor Creagh, Chief Economist at PropTrack. Source: Supply
“However, performance has varied in markets with different supply and demand conditions.
“The increase in properties coming to market this year has been met with strong demand, but increased stock for sale, combined with affordability constraints and a persistently high interest rate environment, has led to a slowdown in price growth.”
Ms Creagh, who is away for the summer, said she expected house prices to continue to rise, albeit more slowly than in previous years.
Melbourne house prices continued to soften in November, according to PropTrack. Photo: David Crossling.
Although inflation is now within the Reserve Bank of Australia's target range, at 2.8 percent for the September quarter and 2.1 percent for October, Nerida Conisbee, chief economist at Ray White, expects the RBA to keep interest rates on hold after the next board meeting. this month.
“Until a few weeks ago, markets were predicting four rate cuts for 2025. Now they are predicting two rate cuts, the first in May and the second in September,” Ms Conisbee said.
“The main driver of that has been the election of Trump in the US and the potential for widespread economic problems in the US, and with that for us.”
