The Australian housing market has seen a rise in dwelling prices for the first time since April 2022, with an increase of 0.6% in March.

The rise in dwelling prices was led by Sydney, with an increase of 1.4%, followed by Melbourne with 0.6%. Despite remaining 8.5% below their 2022 peak, dwelling prices are still 25.5% higher than pre-pandemic April 2020 levels. The tight rental market and a strong demand for housing as population growth has rapidly returned appear to be supporting the housing market, despite the downward pressure from interest rate increases. However, CoreLogic warns that it’s still too early to be confident that price trends have turned sustainably.

The rise in dwelling prices may come as a relief to property owners who have seen their home values drop during the pandemic, but it may also signal a further challenge for first-time homebuyers trying to enter the market. The Australian housing market remains an area of concern for many people as it continues to experience uncertainty due to rising interest rates and changing government policies. However, it is important to remember that the market is constantly evolving, and it is crucial to keep up-to-date with the latest information and trends to make informed decisions.