It’s been another tough year for aspiring homeowners in Australia, as house prices continue their relentless climb, with the average property now costing a jaw-dropping $794,000.

According to the latest data from CoreLogic, property values jumped by $59,000 in the 12 months leading up to July. That’s an 8% increase in just one year!

Perth Property Market Booms

Perth residents have seen some of the most dramatic price surges, with the number of house sales skyrocketing by 29% compared to the five-year average. Unfortunately for buyers, this surge in demand has led to a severe shortage of properties for sale, pushing prices even higher.

First-Time Buyers Feel the Pinch

The dream of owning a home feels increasingly out of reach for many, with property expert Tim Lawless pointing to “chronic housing shortages” across most of Australia. This lack of available homes is creating intense competition among buyers and pushing prices beyond the reach of ordinary Australians.

Is There Any Relief in Sight?

While some experts predicted that rising interest rates would cool the property market, that hasn’t happened yet. Mr Lawless suggests that the continued high demand for housing, fuelled by migration to states like Western Australia and Queensland, is overriding any potential for a downturn.

Renters See a Glimmer of Hope

There is a sliver of good news for renters. After months of soaring rents, it seems the rental market might be finally stabilising, with rents for units actually decreasing in some cities. Sydney experienced the most significant drop, with rental growth slowing to 7.1%, followed by Melbourne at 7.5% and Brisbane at 8.5%.