Surprise Boom: Home Values Soar in Hundreds of Suburbs, Defying All Expectations

Home values have experienced a signifcant surge across a vast majority of suburbs this year. Buyers and sellers have regained confdence, making a return to the market as interest rates stabilize and optimism grows. This turnaround comes as a surprise compared to the dire predictions made a year ago, suggesting a continued decline in prices through 2023. Instead, Australia’s median home value has consistently climbed every month this year, reaching a record high in September.

in nearly 500 suburbs, primarily concentrated in Sydney, Brisbane, Adelaide, and Perth.

PropTrack senior economist Eleanor Creagh identifed the subdued listings environment earlier this year as a driver for the upward trajectory in home prices. Stronger demand, underpinned by record levels of migration, has also been a signifcant factor propelling prices higher. In Sydney, a rebound in population growth, particularly higher numbers of net overseas arrivals, has likely bolstered housing demand. Similarly, Perth, Adelaide, and southeast Queensland have benefted from relative affordability, population growth, and interstate migration.

As for units, Avoca Beach on the NSW Central Coast emerged as the top performer nationwide, with the median value experiencing an almost 26% increase to $1.39 million. Inner city units in Sydney, Melbourne, and Brisbane have seen signifcant price growth due to their affordability compared to houses, making them highly sought after.

On a national scale, home prices have seen an approximate increase of 4.3% this year. However, in certain areas, the limited supply of properties on the market has led to even faster price growth due to strong demand. Data from PropTrack’s automated valuation model (AVM) reveals that values have surged by over 10% this year