Australian Home Prices Maintain Uptrend Despite Slowing Growth

Australian home prices continued their upward trend in August, marking the 19th consecutive month of growth. National home prices rose 0.5% in August, with CoreLogic citing affordability constraints as a factor in the slowing pace. Demand remains strong but is increasingly balanced across cities.

Australian home prices extended their upward streak in August, registering a 19th consecutive month of gains, according to data released on Monday by property consultant CoreLogic. Although national home prices climbed 0.5% in August, this modest rise follows a downwardly revised increase of 0.3% in July, signaling a slowdown in growth rate.

CoreLogic's Head of Research Eliza Owen highlighted that affordability constraints were contributing to this broader slowdown, with a quarterly increase of 1.3% now less than half the pace seen in the same period last year. Despite seasonal factors possibly affecting this trend, there remains an imbalance between demand and supply, though the market is becoming more balanced.

City-wise, Perth saw a 2.0% rise in prices, leading the growth, followed by Adelaide at 1.4% and Brisbane at 1.1%. Sydney experienced a modest 0.3% gain, while prices declined in Canberra, Melbourne, Darwin, and Hobart. A Reuters poll of analysts forecasts over a 6% rise in home prices for the year, even as the Reserve Bank of Australia's interest rate hikes aim to combat inflation, buttressed by record immigration and limited housing supply.

(With inputs from agencies.)