The downturn is officially over, with property prices hitting a new peak after rising 0.36 per cent in October.
According to the PropTrack Home Price Index, the national median value of an Australian home is now $759,000, which is 4.54 per cent year-on-year – a new record.
Four of the capital cities have also recorded new price highs.
Sydney prices have recovered the falls of 2022 and are now .32 per cent higher than the previous record recorded in February last year.
In October, Sydney property prices climbed 0.37 per cent to a median of $1.07 million, with annual growth of 7.51 per cent.
Brisbane, Adelaide and Perth property prices are also at peak rates, with the Queensland and Western Australia capitals both recording 0.52 per cent growth in October.
Brisbane’s media price now sits at $773,000, while Perth’s is $604,000.
Property prices in Adelaide rose 0.47 in October to a median value of $697,000.
PropTrack Senior Economist and report author Eleanor Creagh said despite an increase in listings during spring, the market was still tight.
“National home prices moved higher in October, reaching new peak levels,” she said.
“Although the volume of new listings hitting the market has risen over the spring selling season, the demand for housing has remained strong, fuelling further home price growth and reflecting the sustained improvement in conditions.
“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy.
“At the same time, dwelling approvals have declined, hitting decade lows earlier this year.
“The sharp rise in construction costs, compounded by costly delays arising from labour and materials shortages, has slowed the completion of new homes.”
All capitals, except Darwin recorded price rises in October, with Darwin recording a 0.11 per cent fall to a median value of $493,000, which also makes it the cheapest capital city.
Prices in the combined capital cities set a record high in October and are outperforming regional markets this year.
However, the pace of growth in regional markets has increased after lagging in much of 2023.
In October, regional prices rose 0.32 per cent to set a record high, while capital city prices rose 0.37 per cent.
Regional Queensland ( up .61 per cent) and regional WA (up .45 per cent) led regional gains in October, with prices in both markets reaching a new peak.
Ms Creagh said the price rises were likely to continue.
“Despite a weaker outlook for the economy, population growth is rebounding strongly and this looks set to continue,” she said.
“Interest rates may rise further, but they are likely close to, if not at, their peak.
“Together with a shortage of new home builds and challenging conditions in the rental market, home prices are expected to rise further.”