Aussie home prices lifted 0.3% to hit a new record in May, taking prices up 2.73% for 2024 thus far.

According to the latest PropTrack Home Price Index,  around the country rices were 6.68% above May 2023 levels and up 9.58% from their December 2022 low.

City by city Perth, BrisVegas, and Adelaide are the clear leaders.

There’s heaps stuffed into a small report including some wild price action inPerth, where buying a place has gotten 20% moere expensive in just 12 months.

 

Here’s some key bullies from the PropTrack report:

 

  • National home prices lifted 0.30% to hit a new record in May, bringing prices up 2.73% year-to-date.

  • Nationally, prices were 6.68% above May 2023 levels and up 9.58% from their December 2022 low.

  • Prices in the combined capital cities rose 0.41% to a new peak in May. Capital city prices are now up 7.22% year-on-year, though performance has diverged between capitals as well as regional areas.

  • All capitals bar Hobart (-0.13%) and Canberra (-0.21%) saw prices rise in May, though the pace of home price growth has slowed since the end of the summer in every capital city.

  • Perth (+0.73%), Brisbane (+0.67%) and Adelaide (+0.53%) recorded the strongest price growth in May.

  • These markets also remain the strongest for annual growth, with Perth recording a rise of 20.58%, followed by Adelaide (+14.49%) and Brisbane (+13.69%).

  • Prices in the combined regional areas remained flat in May, while the only regional markets to see price growth over the month were regional NSW (+0.16%) and regional Tasmania (+0.12%).

 

PropTrack senior economist and report author Eleanor Creagh says Aussie home prices lifted 0.30% to hit a new record in May, bringing prices up 2.73% year-to-date. Prices were 6.68% above May 2023 levels and up 9.58% from their December 2022 low.

“With housing supply unable to meet demand, national home prices have cycled though 17 consecutive months of growth to hit a fresh peak in May. Despite a rise in the number of homes for sale this year, strong population growth, tight rental markets, and home equity gains continue to bolster strong demand,” Eleanor says.

Prices in the combined capital cities rose 0.41% to a new peak in May. Capital city prices are now up 7.22% year-on-year, though performance has diverged between capitals as well as regional areas.

Meanwhile, building activity remains challenged by capacity constraints and higher costs, with consequent tight housing supply pushing prices and rents higher.

“This mismatch between supply and demand is continuing to offset the higher interest rate environment. Further, current interest rate stability has sustained buyer and seller confidence, while ongoing home price rises are likely incentivising many to overcome affordability challenges and transact with the expectation of further growth.”

All capitals bar Hobart (-0.13%) and Canberra (-0.21%) saw prices rise in May, though the pace of home price growth has slowed since the end of the summer in every capital city.

Perth (+0.73%), Brisbane (+0.67%) and Adelaide (+0.53%) recorded the strongest price growth in May. In keeping with the trend seen for much of the past two years, these markets remain the strongest for annual growth, with Perth prices up 20.58% over the past year, while Adelaide and Brisbane have grown 14.49% and 13.69% respectively.

Prices in capital cities have outpaced regional areas over the past year.

This trend continued in May, with prices in the combined regional areas remaining flat while regional NSW (+0.16%) and regional Tasmania (+0.12%) were the only regional markets to see price growth in May.

“Despite some easing in the rate of population growth and more stock on market, home prices are expected to lift further in the months ahead,” Creagh said.

“Although, it is likely the pace of growth will continue slowing through the seasonally quieter winter period, particularly with interest rate cut expectations pushed out to late-2025.”