Record -breaking house prices Rand higher when FOMO crawls into – realestate.com.au

The latest data confirm that it has never been so more expensive to buy a house in Australia, with rising demand and shrinking delivery that pushes prices to new highlights.

The Proptrack Home price index shows that house prices have reached a record high in July, with 0.3% last month and 4.9% during the year.

A median priced Australian house now costs $ 915,000, while a unit is worth $ 678,000 to demonstrate the data.

The prices are even higher in the capitals, with the average home value that rises to $ 1,082 million and the value of the unit that is only $ 700,000.

But although the prices have never been higher, last month’s rise was the smallest this year, according to Rea Group Senior Economist Anne Flaherty.

“In part, this may be due to the surprise decision of the reserve bench to keep the interest rates in July, despite the market that expects a reduction on a large scale,” she said.

The RBA chose it last month Delay rates delay Until more evidence showed that inflation decreased sustainably.

That evidence came this week in the form of fresh data data from the new consumer price index of the Australian Bureau of Statistics, with the lowest inflation result since December 2021 Strengthening the case for a speed reduction When the RBA sign then meets in two weeks.

“This increases the chance of an interest rate reduction in August, where more predictors expect at least one rate reduction before the end of the year,” said Mrs. Flaherty

FOMO rises as the question strengthens

The rise in house prices in July came in the midst of a seasonal decrease in the number of houses for sale and an increase in buyers’ demand, said Mrs. Flaherty.

“Although the number for sale houses is delayed in the winter, the buyer’s demand remains strong and the auction percentages are at the highest level in more than two years,” she said.

Auction planning percentages are high, which suggests that prices can rise further. Photo: Jeremy Piper

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“Searches to buy houses on realestate.com.au are also higher compared to a year ago – a good indicator of the upcoming question.”

“There is also growing proof of a” fear of missing “(FOMO) among buyers.”

“According to the consumer sentiment index of the Westpac-Melbourne Institute, three-quarters of the consumers surveyed expect house prices to increase in the coming 12 months.”

How house prices changed in Australia in July

Adelaide (an increase of 9.4%in the past year), Brisbane (an increase of 9%) and Perth (an increase of 7.9%) remain the strongest housing markets in the capital city, although the growth rates have been delayed from the rapid pace that was registered last year.

Price growth of unity in these cities has performed considerably better than that of houses – partly a result of the rapid increase in house values, making units the more affordable option.

Price growth of the unit surpasses that of houses in Brisbane, Perth, Darwin and Hobart. Photo: Getty

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The average price of Brisbane is now about $ 82,000 higher than a year ago after a lift of 13% in values – the fastest growth that is registered among the capitals. House prices rose by around $ 77,000, which represents a slower increase of 7.8%.

It was a similar situation in Perth, with unity values that grew 11.4%, while house prices rose by 7.3%.

The difference between home and unit prices has grown in all capitals in the past year except Canberra and Hobart, with units now offering an even greater discount compared to houses.

Affordable regions perform better than

In contrast to the smaller capitals, Sydney and Melbourne recently recorded a slower growth.

Sydney’s home values only rose 0.1% and 3.3% in the 12 months in July, while Melbourne registered an increase of 0.2% for the month and 1.5% for the year.

Sydney’s strongest growth, however, was almost 10%in the more affordable regions of the city, with house prices in southwestern Sydney in the past year, which corresponds to a profit of more than $ 100,000.

This Cabramatta West House was sold in July for $ 1.46 million. The values in southwestern Sydney have risen by 9.5% in the past year. Photo: realestate.com.au/sold

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Laing+Simmons Cabramatta director Sonny Tran said that investors were becoming more active, which represents about half of the buyers who are currently active in the area.

“It started a few months ago when the interest rate started to fall,” he said. “It has pushed the market up.”

“They feel that another will be reduced soon.”

In the meantime, Darwin has recently registered stronger price growth, stimulated by an increased investor’s interest in affordable high -interest rental homes in the midst of a decrease in the houses on the market.

Darwin’s house prices have risen by 6.5% in the past year and the prices of unit rose by 7.4%, although the growth in July was modest.

Hobart was the second most most sparing capital city market in July after Adelaide, with prices with 0.5%.

The price growth of the city of 2% was a highlight and comes in the midst of a reduction in the time needed to sell a property in Tasmanian capital – a sign of strengthening demand prior to further price increases.

The real estate prices in Hobart are on the road, with unit price growth particularly strong in July. Photo: Getty

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“The stock levels are ridiculously low and the buyers have not dried,” says Hobart Makelaar Nina Schubert of Institu Property.

“Most of the characteristics that we present on the market will receive three offers within a week. Most are between 5% and 10% about the asking price.”

“There is currently a huge amount of buyers from the first house on the market, with a number of major incentives for them.”

Regional Queensland is at the top of the charts

House prices have recently grown faster in the regions, with values in 12 months with an increase of 6.5% compared to 4.3% in the capitals.

While Regional South Australia registered the strongest growth by 12.5%, price growth in parts of regional Queensland is exceptionally strong, Flaherty said.

“Six of the top ten best performing regions in the past 12 months can be found in Queensland, where Townsville takes the lead with a growth of 16.7%,” she said.

“The outperformance of Townsville comes from the back of the high demand of the buyer of both occupiers and investors.”

“Support for the demand was a strong local economy, population growth and a shortage of housing, in particular rental properties.”

Looking ahead, Mrs. Flaherty said that lower interest rates would improve loan capacities and contribute to the momentum of price growth, but poor affordability would keep growth under control.