Australia’s property market has experienced a slight upturn amid skyrocketing interest rates and continuous price falls over the past 12 months, according to the PropTrack Home Price Index released on Wednesday.
The report found home prices were up 0.18 per cent nationally in February, with all capitals aside from Hobart seeing prices rebound.
Adelaide, Sydney and Melbourne all recorded jumps of less than half a per cent, with tight stock levels keeping competition for properties high.
Brisbane, Perth and Darwin all experienced even smaller increases of around 0.1 per cent, while prices in Canberra were unchanged.
PropTrack senior economist and report author Eleanor Creagh said the minor up tick is due to limited stock on the market.
“The pace has slowed within recent months and now the housing downturn has stalled,” she told NCA NewsWire.
“We saw last year that interest rates quickly rose and the housing market’s conditions quickly shifted, but one of the big factors at the moment is stock levels.
“We are seeing far less home buying demand, which we have seen in weakened (buyer) confidence as well.”
Ms Creagh went on to say although the latest figures are stable, it’s too early to conclude the housing market downturn is over.
“We know the number of new listings were exceptionally strong last year, which then tapered off into the back end of last year and now a lot of sellers are holding back from listing their properties for sale … which is constraining supply,” she said.
“It’s too early to confidently call an end to the downturn and certainly we are seeing at the moment that rising interest rates were the primary driver, but there are other factors at play at the moment and the low supply is concentrated by interest.
“Supply will continue to weigh on borrowing capacity, which has now been reduced by about 30 per cent.”
Sydney home prices recorded a 0.26 per cent increase in January. That uplift continued in February, with prices rising a further 0.36 per cent.
Despite the recent stall in the downturn, prices are down 6.64 per cent over the past year, with the NSW capital seeing the largest falls of any market.
The total number of properties listed for sale in Sydney is down by almost 20 per cent compared to the total average for the past five years.
In Melbourne, prices are now down 5.99 per cent over the past 12 months and remain 6.09 per cent below their March 2022 peak.
A similar story is evident in the Brisbane market, with prices 3.49 per cent below their peak recorded in April 2022, with Perth prices now just 0.24 per cent below their peak.
Home prices in Hobart fell 0.29 per cent in February and are now 4.09 per cent below their peak recorded in April 2022.
Adelaide, the strongest performing capital city market over the past year, witnessed home prices rising to a fresh peak, lifting a further 0.44 per cent in February.