As spring approaches, the Australian housing market is witnessing a significant boost, with the highest monthly rise in national dwelling values recorded since October 2023. The Coality Home Value Index (HVI) has increased by 0.81, driven by strong momentum in capital cities and a dramatic decline in listings.

The primary driver of this price growth is a persistent supply shortage, with listings down 53% in Darwin alone. First-time home buyers are now entering the fray, spurred by the launch of the deposit guarantee scheme, which includes new price caps and expanded guarantees.

The National Home Value Index has risen by 2.2% over the past quarter, an increase from 1.5% in June, translating to a gain of approximately $18,215 in the September quarter. 

In terms of specific regions, Perth has seen a 4% increase, while Brisbane is up by 3.5%, particularly within the unit market. Darwin leads the growth charts with a remarkable 5.9% rise in the last quarter. 

According to Tim Lawless, “The number of homes for sale at the end of September was about 53% lower than average in Darwin, 45% below average in Perth, and down 31% in Brisbane. Despite this, estimates for quarterly home sales are exceeding average, highlighting a clear disconnect between demand and supply.”

When examining growth rates, it is evident that houses are generally appreciating faster than units across the nation—except in Brisbane, where unit prices have outpaced house prices over the last seven quarters. Although Perth and Hobart have also experienced some unit value increases compared to houses in September, this trend is less pronounced.

Furthermore, home values have risen across various tiers, likely driven by increased borrowing capacity in response to lower interest rates, which is affecting demand at higher price points.

With stock levels below average in every capital city, this trend contributes to driving up property values even further. The widening gap between supply and demand has enhanced selling conditions, and auction clearance rates have been hovering around the 70% mark since mid-August, up from 63% in the June quarter. 

As we move into spring, the landscape of the housing market remains dynamic, with strong indicators of continued growth and opportunity for both buyers and sellers.