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National Home Values Reach Record High For Fifth Consecutive Month

National home values in Australia hit a record high for the fifth month in a row in March, revealing a 0.6 per cent increase in home prices. 

Data collected by CoreLogic has revealed that the median home price has soared to $772,730, marking a significant rebound from its low point in January 2023.

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The robust trend was proved by PropTrack’s index, which also reported a 0.34 per cent rise in national home prices in March, leading to a staggering 6.79 per cent increase compared to the previous year. 

Tim Lawless, Research Director at CoreLogic, attributed this growth to the unwavering demand despite high-interest rates, soaring living costs, and affordability constraints. 

Mr Lawless said there had been an imbalance between demand and supply caused by the significant population growth and dwindling housing approvals. 

“There’s an imbalance here between demand and supply that doesn’t look like it’s going to be fixed anytime soon,” he said.

While all state capitals witnessed an uptick

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Perth, Adelaide, and Brisbane also marked record-high prices after witnessing substantial surges over the past year.

The Reserve Bank’s consecutive interest rate hikes since May 2022 resulted in escalated mortgage payments, particularly affecting households that secured loans during the pandemic’s record-low interest rates. 

Mr Lawless noted a noticeable trend favouring lower-cost homes, with prices in the lowest quartile rising faster than those in the upper echelons of the market. 

This could be attributed to renters seeking refuge from soaring rental costs and limited vacancies nationwide.

“We have seen first homebuyers over-represented in the market,” he added.

First-time homebuyers represented 28 per cent of owner-occupier demand, which was higher than the long-term average of 24 per cent.

However, affordability concerns persist, with rental prices escalating by 2.8 per cent in the March quarter, the fastest pace in nearly two years.

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