Australian home prices grew 0.4% through the month, with every capital city recording increases except Hobart.
Median prices in Brisbane and Adelaide hit all time record highs of around $900,000 and $828,000 respectively, having grown 0.4% and 0.8% in March.
Prices increased further in Sydney (up 0.3%) and Melbourne (up 0.5%), while Perth's momentum continued to slow as prices in the city grew just 0.2%.
It's the second successive month prices have gone up after the "shallow" downturn of late 2024.
CoreLogic research director Tim Lawless said the uptick is likely a consequence of the February monetary policy decision.
"Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut's direct influence of a slight improvement in borrowing capacity and mortgage serviceability," Mr Lawless said.
It's worth pointing out though these numbers are subject to revision, so it may be a couple of months before it can be confidently concluded that prices are climbing.
Is Perth's boom over?
Perth's property market has led the way over the past couple of years.
Prices in the Western Australian capital have lifted more than 75% since March 2020 – more than any other city.
The median unit price in Perth is $599,000 – higher than that of Canberra, Adelaide and Hobart – while the average house is now worth $839,000, up from $583,000 in July 2022.
It's an extraordinary growth period, but one that's seemingly coming to an end.
Perth's median dwelling price rose just 0.2% month-on-month in March.
Affordability issues may be a major factor hurting demand, with the PRD Economic Property Report finding Western Australia has become the most difficult state for aspiring first home buyers to buy property.
The number of loans written to first time buyers in WA was down 9.9% in December 2024 compared to 2023 – the biggest decline of any state.
However, Dr Asti Mardiasmo of PRD Research believes there are still signs Perth may be a "growth phase".
"Perth's new dwelling cost inflation ... is still quite high, currently the highest among all capital cities," she explained.
"This will impact the delivery of new stock."
She said upcoming construction planned for Perth is mostly in the unit sector, with a "very small number of new houses planned."
"This will increase house prices even further," she said.
Is the only way up for Australian property prices?
Despite both major parties pledging to improve housing affordability if elected on 3 May, many Aussies who don't yet own property are resigned to prices perpetually increasing.
The national median home value has increased 68.3% over the past ten years – a period during which wages rose by just under 26%.
With more cash rate cuts looking likely this year, some expect a subsequent boost in demand could lead to yet another dramatic surge in prices – as occurred in 2021/2022 when the nation was coming out of Covid.
However, Dr Mardiasmo said prices won't necessarily follow the same pattern over the next couple of years.
"Before January 2021, the 'Time to Buy a Dwelling' Index was positive, and then it went to another high," she explained.
"This time, the starting point before the recovery was quite low ... we have travelled from a really low sentiment to an improved place, but still not quite positive.
"We won't see prices boom as per January 2021."
Picture by Michael on Unsplash
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