CoreLogic's National Home Value Index rose a further 0.9% in October, accelerating from a 0.7% rise in September.
Since finding a trough in January, the National Home Value Index has increased by 7.6%, leaving the index only 0.5% below its historic high recorded in April of last year.
Brisbane has some of the fastest rising home values around the country, and it reached a new record high in October, recovering the 8.9% drop through the downturn.
Although housing values are consistently rising across most capital cities, there has been a slowdown in the quarterly pace of growth.
House values have risen 1.4% over the month, adding approximately $10,000 to the median, and unit values are up 1.3% or a little over $7,000.
As the flow of new listings coming into the market accelerates, it's unlikely buyer demand will be able to keep pace amid high interest rates and low sentiment.
Dwelling values rose across each of the capital cities, except Darwin through the month, with Perth, Brisbane, and Adelaide as the top-performing markets.
Meanwhile, Sydney, Perth, and Brisbane have all seen dwelling values rise by more than 10% over the first 10 months of the year.
Brisbane housing values posted a nominal recovery in October, erasing the previous 8.9% drop in values to reach a new record high.
Such strong growth conditions are occurring amid low advertised supply levels, which were tracking almost 41% below the 5-year average at the end of October, and above average demand, where home sales were 5.3% above average over the three months ending October.
The trend in advertised stock levels remains a critical feature of the housing market.
After 10 months of below-average vendor activity, the flow of new capital city listings has ramped up through winter and spring to be almost 12% higher than a year ago.
Although total listings remain lower than this time last year, and below the previous five-year average, it's clear that inventory levels are rising.
Capital city stock on the market is up 5.1% since the start of spring, in a clear indication that buyer demand isn't keeping pace with the flow of new listings.
However, the balance of advertised supply remains diverse around the country.
Additionally, listing numbers have hardly budged in Brisbane and Adelaide.
While vendor activity has picked up, home sales are tracking only slightly above the five-year average across the capitals and are losing some momentum.
Regional sales are holding reasonably steady but at slightly below-average levels.
With vendor activity gathering some momentum, while buyer activity slows, it's likely selling conditions will continue to rebalance back towards buyers, especially in those cities where advertised supply levels are high.
In markets where demand and advertised supply levels are more evenly balanced, it's logical to expect price growth to slow down.
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