Housing values have risen again across Australia for August, with the strongest month-on-month growth since May of 2024.
The average value of houses overall rose by 0.7 per cent, with rises as high as 1.2 per cent seen in Adelaidelast month alone, according to Cotality.
It continues a trend of rising house values – growing 4.1 per cent this year – which is amplified by a lack of supply.
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Cotality estimates supply is still 20 per cent below average for this time of year, which tends to be a busy period in the housing market.
“Once again we are seeing a clear mismatch between available supply and demonstrated demand placing upwards pressure on housing values”, Tim Lawless from Cotality said.
The value of homes in Sydney was modest, only rising 0.8 per cent and 2.1 per cent this year.
However, the median house price in the harbour city is still well clear of the rest of the country, currently sitting at around $1.2 million.
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Brisbane, Perth and Darwin all saw house values go up by at least 1 per cent, whilst Hobart was the only major city to record a decrease in value, falling by 0.2 per cent.
Growth in housing value is a consistent theme, and it could continue should interest rates keep falling, but Lawless suggests it will be more sustainable than the massive growth seen during the pandemic.
“I would be surprised if we saw the monthly rate of change in the national [value] getting anywhere near these earlier cyclical peaks, given how stretched housing affordability has become,” he said
“What is more likely is that home values will rise at a more sustainable pace, with demand dampened by affordability constraints, more normal rates of population growth and cautious lending policy.”
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