Meanwhile, Australia’s housing values moved through a fourth month of recovery in June.
Property prices continued to climb in most markets, with CoreLogic data showing a 1.1 per cent rise in national property values in June. This followed a 1.2 per cent increase in May.
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At its July meeting, the RBA left the cash rate unchanged at 4.1 per cent.
“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” RBA governor Philip Lowe said.
“In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month.
“This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.”
Governor Lowe hinted that further tightening of monetary policy may be required to get inflation under control.
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Every capital city except Hobart (-0.3%) saw dwelling values rise in June, according to CoreLogic data. Sydney continued to lead the way.
“Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%,” CoreLogic’s research director Tim Lawless said. “In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week.”
Limited supply is the main factor driving up prices.
“Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average,” Mr Lawless said.
“Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”
Meanwhile, regional housing values also crept up, albeit at a slower pace compared to the capital cities.
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 614 | 63% | 1064 | ▲ 0.7% |
| NSW | 716 | 58% | 1566 | ▲ 1.8% |
| ACT | 64 | 72% | 110 | ▲ 0.4% |
| QLD | 183 | 48% | 1068 | ▲ 1.3% |
| WA | 10 | 60% | 631 | ▲ 0.9% |
| NT | 3 | – | 25 | ▲ 0.5% |
| TAS | 0 | – | 158 | ▼ -0.3% |
| SA | 92 | 74% | 250 | ▲ 0.9% |
* Monthly Home Values figures as of 30 June 2023
* Australian auction results, clearance rates and recent sales for the week ending 9 July 2023
* The clearance rate is preliminary and current as of 11:30 pm AEST, 12 July 2023
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