Median house prices continue to rise across much of Australia

As outlined in the latest PropTrack Market Insight, the last two years have seen much of the country experience increased house prices.

The data gathered between May 2022 and May 2024 revealed that nationally, median house prices grew by 6.2 per cent. Currently, the median value for a property across Australia is $784,000.

According to PropTrack senior economist Eleanor Creagh, there are a variety of factors at play influencing Australia’s housing market.

“From mid-2022, as interest rates climbed and borrowing capacities fell many expected house prices to follow suit, but home prices have proved resilient in the two years since interest rate tightening began. However, performance has varied across the country,” said Creagh.

“Interest rates began to quickly rise in May 2022, and after 425 basis points of tightening, national home prices have cycled through their 17th consecutive month of growth, now up 6.2 per cent since May 2022.”

These results mirror that of the Real Estate Institute of Australia (REIA), which highlighted in its Real Estate Market Facts (REMF) study that median house price grew by 7.6 per cent over the year to March 2024, increasing to $1,026,903.

Creagh said: “While rising interest rates can lead to lower home prices as borrowing capacities reduce and affordability deteriorates, like the mid and late-2000s, we’re now seeing that there are many other factors that determine the outcome for house prices aside from interest rates.

“Strong population growth, tight rental markets, home equity gains, low stock on market and an undersupply of new homes have offset the significant reduction in borrowing capacities and deterioration in affordability that came with substantial interest rate tightening.

“Stock for sale has consistently shrunk in the top performing markets which has driven more competitive market conditions amid stronger demand and continued to fuel price rises in 2024.”

Leading the charge in increased median house prices was Perth, with figures climbing a substantial 28.5 per cent in the last two years. Following was Adelaide at 21 per cent, Brisbane at 14.4 per cent, and Sydney at 6.6 per cent.

Outside of the major cities tell a similar story, with the rest of Western Australia jumping 20.8 per cent, South Australia 24.4 per cent, Queensland 12.9 per cent, and NSW 1.8 per cent.

Some areas were fortunate enough to see decreased median house prices, with Hobart witnessing the largest drop of 8.8 per cent. Melbourne also saw a decrease of 1.9 per cent and Darwin at 1 per cent.

REIA president Leanne Pilkington noted that inflated prices are felt most in Sydney.

“At $1,627,625 the median price for a house in Sydney continues to be higher than that of other capital cities, 58.5 per cent higher than the national median. At $561,500, Darwin has the lowest median price for houses, 45.3 per cent lower than the national median,” said Pilkington.

“The national median price for other dwellings increased to $670,667, a quarterly increase of 1.9 per cent. Median prices for other dwellings increased in all capital cities except Canberra and Darwin, where prices decreased.

“Sydney continues to be the highest from among the capital cities, 20.2 per cent higher than the national median. The lowest median price for other dwellings is found in Darwin, which at $403,000 is 39.9 per cent lower than the national.”

Investment properties made up 36.6 per cent of all finance to households in the year to March 2024, its highest rate since June 2017. NSW was recognised as the top state for these investments.

“NSW has a much higher volume of [its] lending on dwellings going on investments than any other state. It is important to note that if an investor borrows money in one state, it doesn’t mean they invest in the same state,” said Pilkington.

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