Australian house prices rose again last month, but the market is now split between clear winners and losers in the country’s capital cities.

Average dwelling values climbed by 0.5 per cent in July in what was the 18th consecutive monthly increase in house prices, with the median-valued home worth $798,207.

Three cities bucked the trend, with Melbourne leading the decline with a 0.9 per cent fall over the quarter to June, alongside Hobart (-0.8 per cent) and Darwin (-0.3 per cent).

CoreLogic’s research director, Tim Lawless, pointed to available supply in some capital cities as a key factor behind the different housing growth trends.

“We’re still seeing this underlying imbalance between supply and demand,” he told the ABC.

Sydney remains home to the country’s most expensive real estate, with a median dwelling value — including both standalone houses and apartments — of $1,174,867, up 0.3 per cent from June.

But CoreLogic noted that the quarterly pace of growth in the city had slowed markedly from last year, increasing just 1.1 per cent compared to 5 per cent in the same period in 2023.

Trailing behind Sydney on a distant second is Brisbane, with the median house price now valued at $873,987 after jumping 1.1 per cent during the month.

Canberra has the third highest house prices in Australia, followed by Melbourne, Adelaide and Perth.

Mr Lawless said while house prices were increasing at the national level, the rate of growth was “easing off”.

“We’re definitely seeing some momentum coming out of the market and a lot more diversity from city to city,” he said.

He noted Melbourne’s housing market was moving into a “fairly entrenched downturn” and forecast Sydney could head in the same direction “in the next three or four months”.

“But other markets like Perth, there doesn’t really seem to be too many barriers stopping that market from continuing a really solid rate of growth, given it’s still really relatively affordable and supply remained very low,” he said.

Number of homes for sale down 40pc in some cities

CoreLogic data found the number of homes available to purchase and the supply of newly built homes is not keeping pace with population growth.

This has led to a disparity among states, with the number of homes for sale in Brisbane, Adelaide and Perth more than 40 per cent below average for this time of year.

Mr Lawless said in comparison, Melbourne and Hobart were recording advertised supply above average levels.

Economists are now mostly ruling out the chances of another interest rate hike by the Reserve Bank, after yesterday’s inflation figures came in as expected.

Cuts to the cash rate, which is currently at 4.35 per cent, could also spur another lending boom.

Real estate agents notice a cooling in interest

Real estate agents selling apartments around Melbourne’s inner suburbs said they have noticed investor demand has dropped off.

First home buyers trying to escape high rents are their main clients right now, but apartments are still selling at a swift pace.

Agent Emily Sayers said apartments are typically taking 22 days to come off market.

“So they’re selling quite quickly,” she told the ABC.

Ms Sayers said she had been hearing concern from buyers about a rise in interest rates, but those fears seem to have died down.

While Ms Sayers is upbeat about the market, another real estate agent approached for an interview cancelled because they didn’t want to highlight a “poor climate” in housing.

“You have to work harder in this market,” Ms Sayers said.

“I think that’s really what it boils down to. We’re finding that the single-front homes around $800,000 to $1.2 million tend to be struggling a little bit more [to sell].”

Source: ABC News