Cost of housing hits new record

Median price now $774k

Home prices across the country have hit a new high, exacerbating the cost-of-living crisis for struggling Australians.

According to PropTrack’s monthly Home Price Index, national home prices lifted 0.23 per cent in April to hit a new record. The national median dwelling value is now $774,000. That’s up 6.6 per cent year-on-year and up 40 per cent over the four years since the pandemic started.

That news comes as the likelihood of more interest rate hikes increases due to stubbornly strong inflation, in a further blow to Aussie households.

And while the new home price record will come as welcome news to many homeowners, it again underlines the increasingly unaffordable nature of the real estate market for the average Aussie.

If there is any good news for prospective buyers, it is that the pace of growth is slowing.

“National home prices hit a new record in April, as strong buyer demand has outpaced the rise in new listings this year,” PropTrack senior economist and report author Eleanor Creagh said. “While demand remains robust, the pace of price growth is beginning to slow.”

Record immigration has been identified as the main driver of housing price growth and inflation.

“Strong population growth, tight rental markets, low unemployment and home equity gains are stimulating housing demand,” Ms Creagh said.

“Meanwhile, the supply side of the housing market has fallen short in responding to substantial demand. Building activity is at decade low levels, exacerbating the housing supply shortage.”

According to the PropTrack report, prices in the combined capital cities rose 0.21 per cent to a new peak in April, with prices now up 7.19 per cent since April 2023. However, performance across the cities has varied significantly. All capitals bar Melbourne (-0.10 per cent) and Hobart (-0.24 per cent) saw prices rise in April, though the pace of growth has slowed since March in all cities except Adelaide and Darwin.

Perth and Adelaide remain the strongest performing markets and recorded the fastest monthly growth in April, up 0.83 per cent and 0.55 per cent respectively. Perth prices are up 20.16 per cent over the past year, while Adelaide has grown 13.99 per cent.

Sydney prices were up 0.25 per cent last month and 7.24 per cent annually for a new peak median dwelling value of $1.081m. In Melbourne prices are up 1.1 per cent annually for a median home price of $805,000, down 3.39 per cent on their peak.

Darwin was up 0.17 per cent in April and 0.16 per cent annually, while Hobart was down 0.24 per cent over the month and up 0.16 per cent annually. ACT prices were up just 0.01 per cent for April and 2.1 per cent annually.

Prices in capital cities have outpaced regional areas over the past year. However, regional areas lifted 0.30 per cent in April to a new peak, outpacing the combined capitals.