Nationwide house prices are rising for the sixth month in a row, following a decline in the second half of 2022. However, in some regions prices have remained stable over the past year, rising by a factor of ten.
according to PropTrack June Home Price Index, the price rose by 0.31%. This brings the cumulative increase from the beginning of the year to 2.3%.
While national prices are still slightly below peaks and June 2022 levels, they are recovering despite the sharp rise in interest rates, and several factors appear to be supporting price increases.
Second, demand, as measured by the number of potential buyers per property, remains at 1.8x pre-pandemic levels. This is likely due to strong fundamentals of housing demand, with very low unemployment, rising wages and immigration supporting population growth.
While this trend can be seen in most parts of the country, some areas have experienced significant price increases.
In fact, Queensland, South Australia and Western Australia have largely avoided a recession in 2022 and continue to perform well in their markets, with multiple regions hitting new highs. continuing.
This is evident when you look at the regions that have experienced the greatest increase in house prices over the past year.
Areas with the largest year-over-year growth in home prices
|SA4 region||state||Annual growth in house prices|
|Barossa – York – Midnorth||SA||10.0%|
|South Australia – South East||SA||8.8%|
|South Australia – Outback||SA||8.8%|
|Perth – Southwest||Western Australia||8.2%|
|Adelaide – North||SA||7.9%|
|Darling Downs – Maranoa||queensland||7.3%|
|Perth – North East||Western Australia||7.1%|
Rural Washington’s Bunbury and South-South Barossa-York-Mid-North regions saw home prices rise 10% since June 2022, the highest of any region.
South Australia’s South East and Outback homes also saw strong growth, with prices up 8.8% year-on-year.
In the Adelaide North, Adelaide South and Adelaide West regions, unit prices increased 9-10% year-on-year.Photo: Getty
For units, the Adelaide-North and Cairns region was the best performer with prices up 10.5% and 10.4% over the last 12 months.
Regions with the largest year-on-year unit price increase
|SA4 region||state||Annual unit price growth|
|Adelaide – North||SA||10.5%|
|Adelaide – South||SA||9.5%|
|Logan – Beaudesert||queensland||9.4%|
|Adelaide – West||SA||9.3%|
|Brisbane – East||queensland||5.9%|
Prices for Toowoomba and Logan Beaudesert in Queensland also rose significantly. They are now up 9.6% and 9.4% respectively compared to June 2022.
These regions in particular are seeing extraordinary price increases for a number of potential reasons, including relative affordability, interstate population growth, and more.
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Their median home prices and unit prices are still below the national average; In an environment where interest rates are much higher and affordability is tighter for many buyers, its relative affordability could be attractive to potential buyers.
according to Australian Bureau of Statistics, Western Australia and Queensland recorded the highest rates of population growth in the December 2022 quarter, partly due to interstate immigration. This may have contributed to the increased demand for housing in the above areas.
Markets expect two more rate hikes by early next year, but if supply shortages and strong demand persist, prices are likely to continue rising next year.