2nd October 2023 / Jeremy Desmier: Market Update | 30 September 2023

We enjoyed stunning weather over the weekend, as auction activity took an expected pause due to the AFL Grand Final long weekend. It is hard to believe that we are already into the second month of the Spring selling season!

The REA Group reports that Australian homes have never been more expensive, with new data showing the national median price hit a record high in September. Australia's median home price rose by 0.35% in September and the capital city median increased 0.41%, even though buyers had more properties to choose from last month.

PropTrack senior economist, Eleanor Creagh said growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage.

"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," Ms Creagh said.

Pressure from booming population growth and a shortage of new housing stock is likely to cause prices to rise further, Ms Creagh said.

"Looking ahead, interest rates have likely peaked and population growth is rebounding strongly," she said. "As we head further into spring, more markets are likely to reclaim 2022's fast falls to set new peaks."

Melbourne's median price is now 0.07% higher than a year ago, but pricier regions have outperformed the wider city and led the recovery. Values rose about 4% in the Inner East, 3% in the Outer East and 2% in the Inner South over the past year.

We're looking forward to an uplift in auction activity this weekend, with school holidays now over and many sellers and prospective buyers hoping to secure a sale before Christmas.

For any real estate advice, please give us a call!