Key takeaways
Australian home values continued to trend higher in April, with the national median dwelling value increasing by $4,720 month-on-month.
Under the headline numbers, we are seeing multi-speed conditions with Perth at the top of the growth charts, Adelaide at 1.3% and Brisbane at 0.9%. Sydney and Melbourne have held firm around the 0.4% mark, while Hobart and ACT have emerged from relatively soft conditions.
Almost every capital city is recording stronger growth conditions across the lower value range of the market, with regional markets outperforming their capital city counterparts. Regional Victoria was the only rest of the state market to record a decline in values over the rolling quarter.
Home sales look to have moved through a cyclical peak in November last year, but affordability and low sentiment will likely keep a lid on the volume of sales until interest rates start to track lower.
The persistent rise in housing values, despite high-interest rates, low sentiment, worsening affordability and ongoing cost of living pressures, can be drawn back to the insufficient supply of housing relative to demand. This is keeping markets skewed in favour of sellers in most cities.
It looks as though interest rates could stay 'higher for longer', with the downside risk for housing markets building, despite the mismatch between housing supply and demand.