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Sydney seems to be on track to achieve a growth streak it led the overall gain in dwelling prices in March.

CoreLogic’s Home Value Index showed a 0.6% growth in Australian dwelling values over the month, breaking the 10-month downtrend.

Of all capital cities, Sydney registered the highest growth at 1.4%, followed by Melbourne (0.6%), Perth (0.5%), and Brisbane (0.1%). All other capital cities remained on a downtrend in the month, with Hobart posting the steepest decline at 0.9%.

CoreLogic research director Tim Lawless said what led to the end of the downtrend streak in national dwelling prices is the combination of low supply, the extremely tight rental market, and the boosted demand from the overseas migration.

“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” he said.

“With rental markets this tight, it’s likely we are seeing some spill over from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan.”

On top of this, overseas migration is at record levels and is rising — Mr Lawless said there is a chance more permanent or long-term migrants are skipping the rental phase and are entering the purchase market simply because they are unable to snap up a rental accommodation.

Meanwhile, supply levels have been below average since September last year. By the end of March, listings in capital cities are down by almost 20% from the five-year average.

“Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly -7% below the previous five-year average through the March quarter,” Mr Lawless said.

Overall, housing values across capital cities and broad rest-of-state regions remained higher relative to the onset of COVID in March 2020.

Across regional housing markets, regional Western Australia and regional South Australia remained at cyclical highs despite the mortgage rate hikes.

“In today’s market it is mainly rural areas that are seeing the strongest increases, rather than the commutable coastal and lifestyle markets that were booming through the upswing,” Mr Lawless said.

“However, we are seeing some subtle growth return to regions within commuting distance of the major capitals, after many recorded a sharp drop in values.”

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
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  • $2000 for loans up to $700,000
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5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
  • Find out your loan eligibility in 2 minutes or less
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  • Low fees and fast approval times
5.95% p.a.
5.95% p.a.
$2,385
Principal & Interest
Variable
$0
$0
90%
5.94% p.a.
5.95% p.a.
$2,383
Principal & Interest
Variable
$0
$0
90%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

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Photo by 89Stocker on Canva.

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