Even though interest rates are going up, property prices across the country have gone up for the first time in 11 months.
The national home price index from CoreLogic went up for the first time since April 2022.
Sydney had the most gains last month, while home prices in Hobart continued to fall sharply. A federal study says that over 100,000 homes won’t be built in the next five years.
In March, the median value of homes sold across the country went up by 0.6%, according to statistics from CoreLogic.
Tim Lawless, an expert at the property data company, said that it would have been almost impossible to predict three to six months ago that the housing market would turn around after going down for 10 months.
But there is some difference. The growth is happening in Australia’s biggest cities, but smaller cities like Darwin and Hobart are still going down.
Mr. Lawless said that the top end of the market was driving growth in Sydney, and buyers with cash might be getting back into the high-end market after a time of uncertainty.
The 1.4% monthly increase has put the usual price of a home in Sydney back over $1 million. But apartments and rooms don’t sell for as much as they used to. Mr. Lawless said that rising housing prices could be caused by a number of things.
The economist said that the number of homes for sale is still below normal, which is the biggest reason. This means that buyers have less to choose from, which is making prices go up.
“The supply is very low, and even though demand has also gone down, the supply has gone down a lot more,” he said.