Domain released its house price results for the June quarter, which rose by 2.7% over the quarter across the combined capital cities to be down by only 1.3% year-on-year.
The surge in house prices was driven by Sydney where values jumped by 5.3% over the quarter to be 0.1% higher year-on-year:
Unit values also by 2.6% over the quarter across the combined capital cities, with Sydney (+2.6%), Melbourne (+3.5%), Brisbane (+3.1%) and Adelaide (+6.0%) each recording strong growth:
After values across the combined capital cities fell by 5.6% from their March 2022 peak, values have recovered by 3.4%:
Commenting on the results, Domain chief economist Nicola Powell noted that “the continued mismatch between supply and demand has been a fundamental contributor to the price recovery currently being experienced in the Australian housing market”.
“This has been fuelled by an unseasonably weak flow of new listings and rising demand – with the total number of homes for sale 22% below the five-year average for the combined capitals”.
“However, the tide is gradually changing, as the flow of new listings improves, likely spurred by the persistent pricing recovery or home owners selling due to the higher debt costs”.
“While new listings remain lower than average, there is noted improvement from the deeper declines we have seen previously”.
“Some cities are seeing an improvement – in Sydney, Melbourne, Canberra and Darwin, new listings are higher than their five-year average”.
“As housing confidence improves, and as the mortgage cliff unravels, we could begin to see a slowdown in price growth as listings continue to rise, and those looking to buy have greater choice”.
Record immigration, low listings, soaring rents, increased foreign buyer demand and “fear of missing out” has overwhelmed the stiff headwinds of rising mortgage rates and reduced borrowing capacity.
