House prices have continued to increase for the third consecutive month, as buyer demand, job shortages and supply chain issues continue to push costs up.
The Coalition is going after the supermarket giants in proposed new laws. The plan, which has long been advocated by the Nationals, could see major company’s assets sold off should they abuse their market power. Assistant Minister to the Prime Minister Patrick Gorman rejects the suggestion, claiming the Liberals are only backing it to appease the Nationals. The Greens put forward a broader policy before the House, which has been criticised by business groups. The Prime Minister has called them Soviet-style laws, instead pushing for inquiries into supermarket pricing practices.
Month-on-month, national home prices set new records, growing by 0.34 per cent.
Dwelling prices in capital cities increased by 0.4 per cent, and are now 7.64 per cent above prices in March 2023, and a shocking 35.2 per cent higher than in March 2020.
The figures, released on Monday in PropTrack’s Home Price Index report, found homes in all capital cities bar Hobart had increased in price since February.
Home prices in Tasmania’s capital fell by a slight 0.03 per cent month-on-month, and have dropped by 1.65 per cent year-on-year however they were still up 36.1 per cent since pre-pandemic levels.
Home prices across Australia have reached new highs, as new demand continues to push sale prices up. Picture: NCA NewsWire/ Gaye Gerard
Costs were rising the highest in smaller capital cities the quickest, with year-on-year growth in Perth, Adelaide, and Brisbane soaring by of 18.62 per cent, 13.47 per cent and 12.90 per cent respectively.
PropTrack’s senior economist Eleanor Creagh said that while more homes had been listed in the first few months of 2024, sustained demand “has absorbed the surge”.
“As was widely expected, the Reserve Bank kept the cash rate on hold at 4.35 per cent in March and many expect the next move for interest rates will be down, though timing remains uncertain,” he said.
“The expectation that interest rates may begin to move lower in late 2024 will sustain buyer and seller confidence.”
The median value of a home in Sydney ($1,069,000) is still considerably higher than the $832,000 average price of a home in other capital cities.
In comparison, the median dwelling value of a home in Melbourne is $802,000, and $801,000 in Brisbane.
While rising home prices in capital cities outpaced regional areas, regional home prices also peaked in March, increasing 0.19 per cent month-on-month.
Year-to-date, the biggest regional increases have been on homes in Perth (18.62 per cent), Adelaide (13.47 per cent), and homes in South Australia outside of Adelaide (12.81 per cent).
PropTrack senior economist Eleanor Creagh said home prices will likely continue to increase over the coming months. Picture: Supplied
Ms Creagh said home prices will likely continue to increase throughout 2024.
“Housing demand is also being buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains,” he said.
“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.
“The imbalance between supply and demand is likely to further offset the impact of affordability constraints and a slowing economy. As a result, prices are expected to remain on the rise in the months ahead.”