SYDNEY (Reuters) - Australia's home prices rose at a tepid pace in September, with a jump in listings to a three-year high and lower auction clearance rates suggesting the momentum in the red-hot market has slowed at the start of the usually busy spring season.
Figures from property consultant CoreLogic, released on Tuesday, showed prices across the nation climbed 0.4% in September, in line with the 0.3% growth seen in July and August.
The monthly increase was been driven by a 1.6% jump in Perth, a 1.3% gain in Adelaide, a 0.9% rise in Brisbane, and a 0.2% rise in Sydney, while Melbourne prices slipped 0.1%.
"If the first month of spring is anything to go by, purchasing activity isn’t keeping pace with the flow of new listings," said Tim Lawless, CoreLogic's research director, adding that new listings were at the highest level since 2021.
"A further rise in advertised supply is good news for buyers, but for vendors, it means more competition and the potential for a softening in selling conditions."
Indeed, data showed auction clearance rates have dropped to the low 60% range in capital cities, about 4 percentage points below the decade average, while homes sold by private treaty were staying in the market for longer, at a median of 32 days.
In the September quarter, rents rose just 0.1%, with Sydney, Brisbane and Canberra recording declines.
That would be good news for the Reserve Bank of Australia (RBA), which has flagged elevated rents have been stoking inflation.
The RBA has lagged global central banks in the easing cycle, having ruled out a rate cut by the year's end. However, with inflation set to ease sharply in the third quarter, markets are pricing in a 78% chance the central bank can cut in December.
"A cut to interest rates is looking likely either early next year or even late this year, which will provide a boost to borrowing capacity and should help to support a further lift in confidence for households to make high-commitment decisions like buying a home," said CoreLogic.
The RBA has already cautioned borrowers against taking on too much debt once rates start to fall.