A graph has revealed the grim reality for Australians trying to break into the housing market, with prices in one city soaring 15 per cent in 2023.
Despite five interest rate hikes by the Reserve Bank in 2023 and cost-of-living pressure, house prices rose nationally 5.52 per cent over the year.
Figures released in PropTrack’s latest Home Price Index on Tuesday reveal house prices in all cities are expected to climb in 2024, with a graph showing the incline in the new year.
After hitting a fresh peak in November, combined capital city prices fell 0.09 per cent in December, marking the first and only decline of the year.
Across December, prices fell in Sydney, Melbourne, Hobart and Canberra, but Perth, Adelaide, Brisbane and Darwin recorded strong growth.
Proptrack economist Anne Flaherty said multiple factors contributed to the slowdown of house prices in the last quarter of 2023.
“There was an additional interest rate rise as well as an increase in the supply of homes listed for sale, which provided buyers more choice and helped to alleviate competition,” she said.
Melbourne house prices fell 0.55 per cent, the second sharpest monthly fall behind Canberra.
Prices rose just 0.89 per cent over entire year, remaining 4.6 per cent below peak levels in March 2022.
Victoria’s capital city has been home to the weakest performing property market in the four years since Covid, with prices sitting 15.5 per cent higher than March 2020.
HOBART
House prices in Hobart have been dropping for close to two years and declined by a further 0.41 per cent in December.
Hobart was the weakest performing capital city over the year, with prices down 3.5 per cent and 8.18 per cent lower than its peak in March 2022.
The state’s abnormally high levels of growth between 2020 and 2021 was driven by strong buyer demand.
Since 2021, demand has dropped and prices have corrected in response.
DARWIN
Prices of properties in Darwin edged up just 0.1 per cent in December, with a median value of $482,000.
Compared with the beginning of 2023, Darwin’s median house price is sitting 1.49 per cent lower and remains 2.26 per cent lower than the peak in May 2022.
(news.com.au)
