Professionals Real Estate 
National home prices continue their upward trajectory, marking the sixth consecutive month of growth after a decline in the latter half of 2022. Interestingly, certain regions have shown remarkable resilience, with prices remaining steadfast over the past year and even experiencing an impressive 10% increase in value.
The latest data from PropTrack’s June Home Price Index reveals a 0.31% increase in prices. As a result, the cumulative rise in prices for the year now stands at 2.3%.
While national prices have yet to reach their peak and the levels observed in June 2022, they are making a steady recovery despite the substantial surge in interest rates. Several factors appear to be bolstering this positive trend, supporting the ongoing upward trajectory of home prices.
One contributing factor to the upward trend in home prices is the scarcity of new properties being listed on the market. The number of new listings remains below the levels observed one or two years ago, resulting in limited options for potential buyers.
Furthermore, the demand for housing remains robust, as indicated by the number of potential buyers per listing, which is 1.8 times higher than pre-pandemic levels. This sustained demand can be attributed to favorable factors such as low unemployment rates, wage growth, and population growth supported by migration.
These trends are prevalent in various regions across the country, but some areas have experienced notably higher price growth. Particularly, regional Queensland, South Australia, and Western Australia managed to steer clear of the downturn experienced in 2022. These regions have demonstrated resilience in the market, with prices in multiple areas continuously reaching new peaks.
Despite the prevailing higher interest rates and challenges to affordability for many buyers, the median house and unit prices in regional Queensland, South Australia, and Western Australia remain below the national average. This relative affordability could serve as an attractive feature for potential buyers in these regions.
Adding to the appeal, the Australian Bureau of Statistics reports that WA and QLD experienced the highest rate of population growth in the December 2022 quarter, partly driven by interstate migration. This influx of population is likely contributing to the heightened demand for housing in these particular areas.
Looking ahead, even with expectations of two additional interest rate increases in the near future, it is anticipated that prices will continue their upward trajectory in the coming year, given the persistent supply shortages and strong demand in the market.
