CoreLogic & Proptrack data shows home prices gain $50-60k in value

As a new financial year begins, there’s welcome news for Australians who own property.

New figures show the median home in Australia has increased in value anywhere between $48,000 and $59,000 in the last 12 months, depending on the method of calculation.

Data analytics firm CoreLogic says Australian home values increased by 8% over the 2023-24 financial year, while rival PropTrack says the median home price is 6.55% higher than a year ago.

CoreLogic

CoreLogic says Australian dwelling values increased a further 0.7% in June, taking growth to 8.0% across the 2023-24 financial year.

The firm says that this is the equivalent of a $59,000 increase to the median dwelling value in Australia, which now sits at $794,000.

This is in stark contrast to the previous financial year (2022-23), when CoreLogic’s national home value index fell 2.0%.

“The persistent growth comes despite an array of downside risks including high (interest) rates, cost of living pressures, affordability challenges and tight credit policy,” CoreLogic’s Director of Research, Tim Lawless, says.

“The housing market resilience comes back to tight supply levels which are keeping upward pressure on values.”

But across Australia, it’s an uneven picture, with much of the growth in national values being driven by the mid-sized capital cities, especially Perth, where CoreLogic says values surged another 2.0% in June alone to be an astounding 23.6% higher over the past 12 months.

Adelaide values increased 1.7% in June to be 15.4% higher over the financial year, while Brisbane was 1.2% higher over the month and 15.8% annually.

The pace of growth in Sydney eased slightly from 0.6% in May to 0.5% in June, but homes in Australia’s most expensive property market have still increased by 6.3% over 2023-24, with the median dwelling now valued at an eye-watering $1,170,152.

Melbourne and regional Victoria were the only areas in Australia to go backward in June, with values down 0.2% and 0.3% respectively over the month.

Over the last 12 months though, Hobart is the only capital city to record a decline in values, according to CoreLogic, with values easing just 0.1%.

CoreLogic says those differing growth trends around Australia are reflected in advertised stock levels, “with the strongest markets continuing to show a severe shortage of homes available for sale.”

For example, over the four weeks to the end of June, the number of homes advertised for sale in Perth was 23% lower than at the same time last year and 47% lower than the previous five-year average.

On the other hand, Melbourne listings have risen to be 14% above the five-year average, and Hobart listings have been elevated for several years, tracking 46% above average.

Proptrack

PropTrack, which uses a different methodology based on price rather than a nominal “value,” says national home prices lifted 0.18% to a new peak in June, to sit 6.55% above June 2023 levels.

However, the company points out that’s the slowest pace of monthly growth since December 2022.

“National home prices have cycled through 18 consecutive months of growth to hit a fresh peak in June, despite the pace of growth slowing as winter begins,” PropTrack Senior Economist Eleanor Creagh says.

“Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains continue to bolster demand.

“Meanwhile, building activity remains challenged, resulting in the chronic shortage of housing being exacerbated by a lack of new construction.”

Sydney (up 0.41% in June—annual growth 6.39%), Brisbane (up 0.5% in June—annual growth 14.14%), Adelaide (up 0.45% in June—annual growth 14.61%) and Perth (up 0.65% in June—annual growth 22.52%) are all at new record price highs.

According to PropTrack's figures, Brisbane ($840,000) has now surpassed Canberra ($836,000) as the second-most expensive capital city in the country, with Sydney well ahead with a median home price of $1,107,000.

Melbourne saw the greatest monthly decline in home prices of all the capitals (-0.43%), with prices in Hobart (-0.21%), Darwin (-0.11%) and Canberra (-0.05%) also down marginally.

Over the past year, Melbourne (-0.07% to median home price $807,000) and Hobart (-2.06% to median home price $671,000) were the only two capital cities to see price falls.

The take-out

Overall, both data analytics firms seem confident that nationally, home values and prices will continue to rise over the 2024-25 financial year.

“Interest rate stability has sustained buyer and seller confidence, while the continuous rise in home prices is motivating many to overcome affordability challenges and transact with the expectation of further growth, " PropTrack's Eleanor Creagh says.

“As a result, demand is outpacing supply, pushing prices and rents higher and offsetting the higher interest rate environment.”

She also points to the effect of more disposable income in people’s pockets.

“From July, tax cuts will lift household incomes, increasing borrowing capacities and buyers’ budgets, further supporting price growth.”

The analysis is similar to CoreLogic’s Tim Lawless.

“Although the risks facing the housing sector are growing, we are still expecting home values to rise, at least into the near term,” he says.

“Until supply and demand rebalance, there is likely to be further upward pressure on home values.”