House prices in the Hunter are continuing to rise as the real estate industry celebrates the first month of the spring selling season.
In Newcastle and Lake Macquarie, they rose 1.43% in the past three months, 2.61% up in the past year.
In the Hunter Valley, prices rose 1.36% this quarter and 2.53% compared to 2022.
Industry experts say the growth shows confidence is returning to the property market.
It comes after the nation experienced one of its worst house value slumps in decades in 2022.
Australia home prices rose 0.8% in September, an eighth consecutive month of growth.
According to the PropTrack Home Price Index, prices in regional NSW were up 0.36% in September, up 0.7% on last year.
Sydney continues to lead the way nationally, with home prices rising for the tenth consecutive month, lifting 0.48% in September, to be up 6.86% year-on-year.
PropTrack’s Eleanor Creagh says national house prices returning to peak and a return in buyer and seller confidence indicates the most rapid decline in home prices in recent history is now fully reversed.
“The spring selling season experienced a busy start in September. Buyer and seller confidence is on the up and choice is improving significantly in the major capitals,” she said.
“Despite the uplift in the number of properties coming to market, national home prices have moved higher again, regaining 2022’s rapid price falls in entirety to reach a record high in September.
“Home price growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage.
“While a sharp increase in the number of properties hitting the market in Sydney and Melbourne has been improving choice for buyers, strong demand has seen prices continue to lift.
“Looking ahead, interest rates have likely peaked and population growth is rebounding strongly. Together with a shortage of new home builds, prices are expected to rise. As we head further into spring, more markets are likely to reclaim 2022’s fast falls to set new peaks.”
It’s a sentiment echoed by CoreLogic research director, Tim Lawless.
“Possibly we are starting to see renewed affordability challenges deflecting more demand towards the middle of the market where barriers to entry are lower,” he said.
“Softer housing conditions across regional Australia looks to be more demand-driven, with the estimated number of home sales 6.5% lower than a year ago and 9.2% lower relative to the previous five-year average.”
At the current rate of growth, Mr Lawless expects to see the national Home value Index recover to a new nominal high by the end of November.
For more property news:
- $110million precinct approved for Newcastle West
- McCloy Group releases latest offering
- Architects weigh-in on supply budget initiatives
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