CoreLogic reports that Australian home prices are continuing to rise in April

AUSTRALIA’s home prices rose rapidly in April, mostly due to price increases in the less expensive segments of the market. A chronic shortage of housing stock dominated concerns regarding high interest rates and the rising cost of living.

The figures from property consultancy CoreLogic out on Wednesday (May 1) indicated that the national average of prices increased by 0.6 percent in April, unchanged from the gains in February and March. Prices have already increased 8.1 per cent in 2023 to reach the previous high.

For April, price gains were fueled by a 2 percent increase in Perth and a 1.3 per cent increase in Adelaide which are both cheaper markets. Prices in Sydney rose 0.4 percent, and Melbourne fell 0.1 per cent.

CoreLogic found that almost every capital city is recording more growth in the lower value segment of the market.

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The report noted that the steady increase in the cost of housing in spite of a variety of factors that usually lead to lower prices can be traced to an insufficient housing supply relative to the demand.

Despite the fact that the high rate of inflation across the country has created the possibility that interest rates could stay high for longer, “housing values are likely to be supported by the mismatch between supply and demand, something that doesn’t seem like it will change anytime soon”, said CoreLogic.