Recovery in property prices quickens, with sixth consecutive monthly rise

Australian property prices are continuing their recovery, with more buyers expected to enter the market in coming months as inflation eases and interest rates pass their peak.

Research from two property research companies released today showed values picking up across the country.

CoreLogic's Home Value Index (HVI) rose by 0.8 per cent in August, a sixth-straight monthly increase, the property research company said.

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Since bottoming out in February, the national HVI is up 4.9 per cent, adding about $34,301 to the median home price.

Every capital city except Hobart, which recorded a dip of -0.1 per cent, recorded a rise in home values. The highest increase in home values was in Brisbane, ahead of Sydney and Adelaide.

"Sydney has led the recovery trend to-date with a gain of 8.8 per cent since values found a floor in January this year," said CoreLogic's research director, Tim Lawless.

"Brisbane has also posted a strong recovery with values up 6.2 per cent since bottoming out in February."

CoreLogic research found house prices are commonly picking up at a faster rate than units in capital cities.

Data for the amalgamated capital cities showed house prices 6.3 per cent higher than in February. Unit values have increased by 4.9 per cent.

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CoreLogic said a lack of stock on the housing market in previous months was a major reason for the recovery in prices.

"Rising stock levels will be one of the most important factors to watch over the coming months," the report said.

While more households will be facing mortgage stress well into next year due to high interest rates, CoreLogic said, there were signs cost-of-living pressures were easing.

It noted inflation was falling faster than expected and the risk of future interest rate hikes has "subsided".

New data from another property research firm PropTrack also showed property prices were rising.

Figures released today showed the national median house price is $813,000, up by 0.25 per cent in August.

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Across the country, the value of the average home increased in each major city, PopTrack said.

Adelaide recorded the largest increase in home value, up 0.6 per cent.

Sydney claimed the highest median house value at more than $1.3 million.