Australian home prices post strongest monthly rise since 2023
Make us a preferred source
Make us a preferred source on Google
The news: Australian home prices saw their strongest monthly gain since October 2023 in September, as scarce supply continues to see selling conditions strengthen.
The numbers: Cotality's Home Value Index (HVI) update for October recorded a 0.8% increase in September, powered by growth conditions across the capital cities, where values rose 0.9% over the month.
Darwin was the top monthly gainer with a 1.7% increase followed by Perth at 1.6% and Brisbane at 1.2%. Bellwether Sydney climbed 0.8%, taking the median result for the nation’s major cities up 0.9%.
On a quarterly basis, the national HVI increased 2.2%, up from a 1.5% lift in the June quarter and double the 1.1% increase seen over the three months to March. In dollar terms, the September quarter rise was equivalent to a $18,215 increase in the median dwelling value.
The context: Home values have risen across each of the broad value tiers, Cotality said. However, the strongest pace of growth has rippled from the lower quartile of the market to the broad middle.
This is likely a reflection of increased borrowing capacity thanks to lower interest rates, which in turn is supporting demand at slightly higher price points. The Reserve Bank of Australia has cut rates three times this year and is expected make another two reductions by May.
Cotality also said that advertised stock levels are below average across every capital city, adding to the momentum in home value growth. Over the four weeks to 28 September, capital city listings tracked about 18% below the previous five-year average.
Meanwhile, estimates of sales activity through the September quarter were 7.3% above the previous five-year average.
The disconnect between supply and demand has seen selling conditions strengthen. Auction clearance rates have been holding around the 70% mark since mid-August, up from an average of roughly 63% through the June quarter and 62% in the three months to March.
The source: Cotality press release
