Add CategoryAussie home prices have flatlined over spring following a listings jump and growing hesitancy from buyers as the Reserve Bank mulls over whether to cut interest rates.
PropTrack’s Home Price Index released Tuesday showed national home prices inched up 0.04 per cent over September, while capital city prices nudged up by an average of 0.01 per cent.
The growth was described as “flat” and was much slower than the rises recorded over winter when there were far fewer properties up for sale and buyer demand was stronger.
It also means prices remain about 6 per cent higher than they were a year ago across much of the country, but PropTrack noted that conditions varied across each capital and regional market.
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![DAILY TELEGRAPH Saturday 28 September , 2024
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Price growth has slowed in many areas. Picture Thomas Lisson
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PropTrack economist Eleanor Creagh said buyers were benefiting from more choice in most areas.
“Though prices are rising, sustained high interest rates, cost of living pressures, weak consumer sentiment and affordability constraints are weighing,” Ms Creagh said.
“Buyers now have more properties to choose from, though uncertainty around the timing of interest rate cuts is likely also having an impact on the pace of growth.”
Adelaide had the highest rate of growth over September with prices rising an average of 0.53 per cent, followed by Perth with an average rise of 0.24 per cent. Brisbane growth was 0.2 per cent.
Sydney prices remained largely unchanged, with monthly growth of 0.01 per cent, although some city regions recorded a fall in prices.
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Hobart prices dropped an average of 0.31 per cent and Melbourne prices fell 0.3 per cent.
Melbourne is the only major capital where home prices are, on average, lower than they were a year ago. A typical Melbourne home is about 1.8 per cent cheaper than this time last year.
Among the smaller capitals, Hobart prices are about 1 per cent cheaper than in September 2023, while Canberra prices are about 0.38 per cent lower.
Finch Financial chief executive Julian Finch said vendors were increasingly under pressure to sell quickly.
“(Some) sellers are now desperate. There are a lot of stressed homeowners and property investors that are trying to offload their properties and they are prepared to sell it to the first person that offers them the best deal,” Mr Finch said.
“While it is a buyer’s market and often this means that you have more power to negotiate as a buyer, there are currently many buyers in the market and many sellers who are desperate.
“This means, sellers will move quickly to lock in a sale with the buyer who acts the fastest and offers the best terms.”
SQM Research director Louis Christopher said Melbourne, and to a lesser extent Sydney, had become buyer’s markets.
He explained that buyers in both markets would likely continue to hold the power until the Reserve Bank of Australia decided to cut interest rates.
Adelaide growth was the highest in the country.
Sydney was a mixed market.
Once rates were cut, buyer demand would likely exceed supply again, Mr Christopher said.
Mr Creagh said it was likely prices would continue lift over the coming months at a slow pace.
“Housing demand remains resilient, defying affordability constraints with prices lifting across much of the country in September, albeit at a slower pace in most markets,” she said.
“July’s tax cuts boosted borrowing capacities and buyers’ budgets, while the persistent growth in home prices is likely motivating some to overcome affordability challenges and transact.
“Ahead, prices are expected to lift through the typically busier spring selling season, albeit at a slower pace.”