Home prices are hitting new peaks despite recent increases in interest rates as demand and confidence rise.
Prices of homes have grown by 4.54% in the past 12 months according to PropTrack's November Home Price Index.
To uncover the most popular areas, we looked at the regions in each state that had the largest annual change in home prices.
|Annual change in home prices
|Sydney - Parramatta
|Melbourne - Inner East
|Brisbane - South
|Adelaide - North
|Perth - South East
|West and North West
|Rest of Tas.
The South Australia and Western Australia markets have continued to outperform our other states.
We can see this in their top growth regions Adelaide - North and Perth - South East where prices rose by 14.60% and 15.31% since November 2022, the highest among all SA4 regions in the country.
Brisbane South was popular among buyers in Queensland. It led the growth in home prices with a 11.73% increase over the year.
Homes in the Parramatta region saw their prices increase most among all SA4s in New South Wales. Compared to November 2022, they now cost 10.54% more on average. This reflects the surge in demand among buyers in the region.
In Victoria, Melbourne's Inner East was the top growing region. Properties prices are 3.73% higher than a year prior.
The November Home Price Index reflects the 11th consecutive monthly increase with prices now 1.29% higher than the previous peak in March 2022.
Although the pace of growth has slowed following a surge in the number of new listings, namely in Sydney and Melbourne, demand from buyers is strong and prices are continuing to rise as a result.
The heightened level of demand is one factor contributing to the upward trend in dwelling prices, and improved buyer sentiment is a driving force of this demand.
The positive views toward the market stem from the recent increases in home values and the belief that interest rates are nearing their peak.
Price growth can be attributed to the shortfall of new home builds and rentals as well. Ongoing delays in construction have seen fewer new properties hit the market, while record low vacancy rates have seen many renters switch to the buyer's market.
We expect prices to continue rising as demand remains elevated and shortages in housing stock persist. However, as seller confidence lifts and more homes hit the market, prices are likely to grow at a slower pace in the near term.