Australian home prices jumped again in June, rising 0.3% month-on-month. National prices are now just 0.1% lower than they were a year ago.
Across the capitals, prices are now higher than the same time last year.
Sydney continued its comparatively strong recovery (+0.6%) in June, with prices up 4.5% since their trough last year. Prices in Sydney are just 3% below their peak recorded in February 2022.
Hobart and Darwin were the only capitals to see prices decline in June. Hobart has continued its period of underperformance after strong growth for the previous few years. Prices in Hobart are now 7.15% below their peak.
As has been the case for much of 2023, regional areas recorded slower growth than capital cities.
Prices in capitals are up 3.0% since December, compared to 0.8% for regional areas. That said, prices regionally held up better in 2022, meaning prices have not fallen as far as in capitals.
The latest Proptrack Home Price Index shows the 2023 house price recovery continued in June, despite the Reserve Bank lifting the cash rate for the 12th time since May last year.
According to Angus Moore, Economist at Proptrack, interest rates will continue to be a headwind for home prices, but the peak of interest rates is likely close.
Higher interest rates are being offset by a limited flow of new properties hitting the market, as well as strong fundamentals for housing demand.
While the total number of properties listed on realestate.com.au has picked up compared to a year ago, the flow of new properties hitting the market remains subdued, which is creating a more competitive environment for properties coming to market.
With auction clearance rates strong, and fewer properties hitting the market during winter, price growth is likely to continue in the near term, despite the potential for further interest rate increases” said Moore.
According to PropTrack's data Sydney home prices continued their recovery in June after leading the downturn in 2022.
Sydney home prices have now increased for seven straight months, with a 0.6% rise in June.
That means home prices are now up 4.5% from their trough in November last year and are just 3% below their February 2022 peak.
Home prices in Melbourne increased 0.2% in June, bringing them up 0.8% from their low in January this year according to Proptrack.
While Melbourne has not seen as sharp a recovery in prices this year as Sydney has, it also did not see as large a decline in 2022.
Even so, prices in Melbourne are still 5.2% lower than their peak in March 2022.
Proptrack reports that Brisbane recorded home price growth of 0.1% in June - a slower pace than in recent months.
Even so, Brisbane prices are recovering with six consecutive months of growth.
This brings prices up 2.9% since December.
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Adelaide recorded further price growth in June and continues to be one of the strongest-performing markets in Australia, alongside Perth according to Proptrack.
Unlike most other capitals, Adelaide did not see much of a downturn in prices in 2022.
As a result, prices are up 5.3% compared to a year ago.
Prices in Hobart fell again in June according to Proptrack, marking 15 consecutive months of declines.
Relative to its peak, Hobart has seen the largest decline in prices of any city.
Even so, this downturn comes after very strong growth during the pandemic, meaning prices are still up more than 38% compared to February 2020.
Home prices increased a modest 0.1% month-on-month in Canberra in June, marking the fourth straight rise in the Proptrack Index.
While that has helped offset some of the price declines in 2022, prices are still down 5.5% from peak.
Perth’s home prices increased further in June, up 0.3% month-on-month.
Unlike most other capitals, Perth largely avoided a downturn in prices in 2022.
As a result, prices are now 5.7% higher than a year ago.
In part, this is because there is very little choice for buyers in Perth: the total number of properties listed for sale in Perth is near record lows according to the Proptrack report.
Darwin prices declined slightly in June according to the Proptrack report.
Unlike many other capitals, Darwin has not seen a recovery in prices in 2023, but it also did not see as large a downturn in 2022.
As a result, prices are only 1.5% lower than a year ago.