Australian house prices on track to hit new record high, latest property data shows
House prices are on track to hit a new record high, despite a gradual increase in properties for sale and the pressure of higher interest rates.
CoreLogic housing data showed prices rose 0.8 per cent nationally in September, led by Adelaide, Brisbane and Perth, where housing supply remains about 40 per cent below the five-year average.
The median price of a home is now $1,110,660 in Sydney, $776,716 in Melbourne and $691,591 in Adelaide.
Head of research Eliza Owens said it meant Australia's housing market was only 1 per cent below the previous high in April 2022.
"Through the start of 2023 values started to rise and that comes in spite of four rate rises through the start of the year," Ms Owens said.
"It's probably a reflection of the extraordinary mismatch of supply and demand in Australia's housing market."
The situation continues to frustrate thousands of hopeful first home buyers.
Justine and Kester Rozario have been hunting for six months for a home to start their "future family", but have not found anything affordable yet. 
They were the underbidders on a three-bedroom property at Greystanes in Western Sydney on Saturday, which sold for $1,249,000 — well above the reserve.
Despite the persistent increase in prices, Mr Rozario remains hopeful that growth is slowing in Sydney.
"I think over the last three or four months it's probably slowed down a little bit in terms of the amount of people that are at these auctions," Mr Rozario said.
Partner Justine said higher interest rates had reduced their borrowing capacity.
"It's made us re-adjust our goals a little bit, but we're in a decent place where hopefully we can support our family," she said.
Mr Rozario's feeling that growth was slowing in the Sydney market is backed by the latest CoreLogic data.
Ms Owens said despite an overall shortage of listings, more people than usual have chosen to sell their home over the winter months.
"We've seen a consistent rise in new listings in Australia's housing market, and that's taken a little bit of heat out of price growth, which is pulled back to about 2.2 per cent through the September quarter, compared to a 3 per cent rise in June."
The September quarter saw Adelaide record the highest capital gain at 4.3 per cent, followed by Brisbane at 3.9 per cent and Perth at 3.6 per cent.
Sydney's property market grew by 1 per cent in September, while Melbourne's growth was just 0.4 per cent.
On Saturday, a small post-war house in Marayong in Western Sydney sold above the reserve price at auction for $780,000.
Real estate agent George Elias advertised the property as "in need of a little love and care".
He said the market was still "quite strong", because demand was greater than supply.
"There's a lot of buyers in the market and not a lot of properties up for sale," Mr Elias said.
On the other end of the spectrum, the Hobart market dropped by 0.6 per cent.
Regional markets are continuing to lag behind the capitals, with every 'rest of state' region recording weaker growth conditions relative to their capital city counterpart over the September quarter.
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