National home prices moved higher in September, with the spring selling season blooming. National prices have now recovered 2022’s falls entirely after climbing 0.35% month-on-month to peak levels. Prices are up 4.31% so far this year.
The spring selling season experienced a busy start in September. Buyer and seller confidence is on the up and choice is improving significantly in the major capitals. Despite the uplift in the number of properties coming to market, national home prices have moved higher again, regaining 2022’s rapid price falls in entirety to reach a record high in September.
Home price growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage. While a sharp increase in the number of properties hitting the market in Melbourne has been improving choice for buyers, strong demand has seen prices continue to lift. Looking ahead, interest rates have likely peaked and population growth is rebounding strongly. Together with a shortage of new home builds, prices are expected to rise. As we head further into the remainder of the year, more markets are likely to reclaim 2022’s fast falls to set new peaks.
Melbourne home price growth accelerated in September, with prices climbing 0.25% month on month. This returns Melbourne to positive annual price growth for the first time since 2022, with prices up 0.07% from their level a year ago. Even so, prices in Melbourne remain 4.27% below their peak in March 2022. Home prices are up 1.66% from their low point recorded in January 2023, meaning the price recovery in Melbourne is lagging Sydney and Brisbane, but remains ahead of the recovery seen in Hobart and Canberra.