All capital cities are now recording year-on-year growth. Adelaide and Perth are leading the way, recording well over six per cent growth over the past 12 months. Melbourne and Hobart are the slowest growth capital cities. 

Over the past month, we have seen a lift in the number of properties for sale. There are a number of drivers for this. On one hand, rising interest rates and continued negativity towards landlords has led to an increase in the number of investors selling. More positively, increasing prices are encouraging more people to sell. 

In July, we saw prices decline slightly. This was likely due in part to the surprise interest rate rise in June. More stock on the market was also likely a factor. This appears to have now turned around completely. The markets that saw the biggest price falls last year saw the biggest increases last month. Sydney tops the list for August with a 0.9 per cent increase for the month. 

All capital cities are also now recording year-on-year unit price growth. Very strong population growth and building challenges has resulted in Brisbane recording the most growth. Brisbane units continue to see a faster rate of growth than houses. 

While there was speculation that house price growth would slow once more stock comes to market, this doesn’t seem to be the case. Furthermore, Ray White listing authority data, an early indicator of total listings volumes, suggests that in some markets, particularly Queensland and Victoria, the surge in listings may start to moderate. This will further fuel price growth. 

While surprising that demand for housing is so high in such a high interest rate environment, it reflects strong population growth and a reduction in new home construction. With interest rates at or close to peak, it is likely greater certainty about where rates will settle also seems to be a factor. 

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