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Surprising turnaround in property market as prices rise in Sydney and Melbourne, even despite cost-of-living crisis: Here’s why
- Home prices rise 0.18% in February
- The housing market recession has stalled
- Limited stock has a big impact on prices
Australia’s property market has seen a slight rebound amid soaring interest rates and continued price declines over the past 12 months, according to the PropTrack home price index released on Wednesday.
The report found that house prices rose 0.18 percent nationally in February, with all capitals except Hobart seeing a rebound in prices.
Adelaide, Sydney and Melbourne posted jumps of less than half a per cent, with tight inventory levels keeping competition for properties high.
Brisbane, Perth and Darwin saw even smaller increases of around 0.1 percent, while prices in Canberra were unchanged.
PropTrack senior economist and report author Eleanor Creagh said the small increase is due to limited stocks on the market.
PropTrack senior economist and report author Eleanor Creagh said the small rise in Australian property prices is due to limited stocks on the market.
A new report found house prices rose 0.18 percent nationally in February, with all capitals except Hobart seeing a rebound in prices.
“The pace has slowed in recent months and now the housing decline has plateaued,” he told NCA NewsWire.
‘We saw interest rates rise rapidly last year and housing market conditions change rapidly, but one of the most important factors right now is inventory levels.
“We’re seeing much less demand to buy homes, which we’ve also seen in weakened (buyer) confidence.”
Ms Creagh went on to say that although the latest figures are stable, it is too early to conclude that the property market downturn is over.
“We know that the number of new listings was exceptionally strong last year, then slowed down towards the end of last year and now many sellers are holding back from listing their properties…which is restricting supply,” he said. . saying.
“It’s too early to confidently call for an end to the recession and we’re certainly seeing at the moment that rising interest rates were the main driver, but there are other factors at play right now and the low supply is concentrated in the interest”.
Australia’s housing market recession has stalled, but it’s too early to tell if it’s over
“The offer will continue to weigh on borrowing capacity, which has now been reduced by 30 percent.”
House prices in Sydney posted an increase of 0.26 percent in January. That improvement continued into February, with prices rising another 0.36 percent.
Despite the recent stalling in recession, prices fell 6.64 per cent over the past year, with the NSW capital experiencing the biggest falls of any market.
The total number of properties for sale in Sydney has fallen by almost 20 per cent compared to the overall average for the last five years.
In Melbourne, prices are now down 5.99% over the past 12 months and remain 6.09% below their March 2022 peak.
A similar story is evident in the Brisbane market, with prices 3.49% below their April 2022 peak, with Perth prices now just 0.24% below their peak.
House prices in Hobart fell 0.29% in February and are now 4.09% below their April 2022 peak.
Adelaide, the best performing capital city market over the past year, saw house prices rise to a new high, rising a further 0.44 per cent in February.