National home prices hit new peak in June: PropTrack

The latest PropTrack Home Price Index has revealed that national home prices rose by 6.55 per cent since June 2023 to a median price of $787,000.

Prices lifted 0.18 per cent in June, the slowest pace of monthly growth since December 2022. Prices climbed by 10.14 per cent from their December 2022 low, and by 3.14 per cent year-to-date.

Similarly, while price growth slowed in the combined capital cities, they still ticked up by 0.22 per cent to reach a new peak in June. The median value of all dwellings in the capital cities in June 2024 was $855,000, up 6.91 per cent year-on-year.

Performances varied across each city as conditions differed across the capitals, but growth levels reached their peak in Sydney, Brisbane, Adelaide, and Perth.

For example, home price growth slowed in every capital city over the past quarter, with the strongest growth recorded in Perth (up 0.65 per cent), Brisbane (up 0.50 per cent), and Adelaide (up 0.45 per cent).

On the other hand, the weakest performing cities were Melbourne (down 0.43 per cent), Hobart (down 0.21 per cent), Darwin (down 0.11 per cent), and Canberra (down 0.05 per cent).

The fastest pace of annual home price growth was recorded in Perth (up 22.52 per cent), followed by Adelaide (up 14.61 per cent) and Brisbane (up 14.14 per cent).

While capital city growth rates outpaced regional areas, prices also peaked in the regional areas, according to the Home Price Index for June 2024.

There was a monthly growth of 0.07 per cent in the regional areas and an annual growth of 5.61 per cent, resulting in a median value of $643,000.

Prices reached their peak in regional NSW (up 0.08 per cent in June to $729,000), regional Queensland (up 0.24 per cent to $682,000), and regional Western Australia (up 0.59 per cent to $504,000).

However, prices were down in regional Victoria (down 0.22 per cent to $586,000), regional South Australia (down 0.13 per cent to $441,000), and regional Tasmania (down 0.22 per cent to $502,000).

Noting the slower pace of growth across Australia as winter begins, PropTrack senior economist and report author, Eleanor Creagh, said despite more homes hitting the market this year, buyer demand continues to be high, driven by strong population growth, tight rental markets, and home equity gains.

Moreover, building activity remains subdued, she added, resulting in the “chronic” housing shortage being exacerbated by a lack of new construction.

“Interest rate stability has sustained buyer and seller confidence, while the continuous rise in home prices is motivating many to overcome affordability challenges and transact with the expectation of further growth,” Creagh said.

“As a result, demand is outpacing supply, pushing prices and rents higher and offsetting the higher interest rate environment.”

With the stage three tax cuts commencing today (1 July 2024), Creagh said this could lift household incomes and bolster borrowing capacity and buyers’ budgets, and further facilitate price growth.

“Although home prices are expected to rise in the coming months, they will likely maintain a slower pace through the seasonally quieter winter period, particularly with increasing uncertainty around interest rates,” she concluded.

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