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Australia’s home prices increased in May, with Sydney and Perth leading the growth over the month.

PropTrack’s latest Home Price Index showed a 0.33% increase in home prices across the country, bringing prices up 1.55% from the low point recorded in December 2022.

Over the three-month period to May, home prices in the combined capital cities have risen 1.34% in the past three months, the strongest quarterly growth since the December quarter of 2021. 

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PropTrack senior economist Eleanor Creagh said gains became widespread in May, with every capital city except Darwin recording increases.

“Canberra and Hobart joined the rebound as their recent falls reversed. Meanwhile, all regional markets saw prices rise in May except regional NSW and regional Victoria,” she said.

One trend worth noting is the superior performance of capital cities relative to their regional counterparts on monthly terms. On annual basis, however, regional markets reported higher growth rates than capital cities.

Ms Creagh said the decision of the Reserve Bank of Australia to lift the cash rate in May has not deterred the current home price rebound, and this could be driven by the limited supply and rising demand.

“Supply constraints have eased slightly with respect to total stock for sale, but the flow of new listings remains soft. This is keeping a floor under prices, with sellers benefitting from less competition with other vendors,” she said.

“Market conditions have improved following five consecutive months of price growth, driven by stronger housing demand relative to stock on market.”

 Ms Creagh said auction activity it is also interesting to note that auction activity has improved, and clearance rates remain firm after rising above levels seen in the second half of 2022, at a time when interest rates were rising rapidly and prices were falling in most markets.

“Although they are at or close to peak levels, interest rates may still rise further and the economy is also expected to slow — these factors may weigh on home prices in the months ahead,” she said.

“However, the continued tightness in the labour market, stronger housing demand and the limited supply environment are likely to support an ongoing recovery.”

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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  • Immediate cashback upon settlement
  • $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 Harlz on Canva.

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