House prices across the country have reached new highs, exacerbating the cost-of-living crisis for ordinary Australians.
According to PropTrack’s monthly house price index released on Tuesday, national house prices rose by 0.23% in April to set a new record. The national median home price is now $774,000. That’s a 6.6% year-over-year increase and a 40% increase over four years since the start of the Covid pandemic.
This information comes as the likelihood of further interest rate rises due to persistently high inflation increases, which is a further blow to Australian households.
And while the new record high in house prices will be welcome news for many homeowners, it again highlights the increasingly unaffordable nature of the housing market for the average Australian looking to buy a new home.
If there is any good news for prospective buyers, it is that the rate of house price appreciation is slowing.
Record immigration has been identified as the main driver of house price growth and inflation.
In Melbourne prices rose by 1.1% per annum for an average house price of $805,000, down 3.39% from its peak.
Australia’s largest lender, Commonwealth Bank, has warned that interest rate rises are now a “short-term risk”. If that doesn’t happen, CBA’s head of Australian economics Gareth Aird said any interest rate cuts would likely come later than expected.
