Australian Home Prices Reach Record High Despite Election Uncertainty

Australian home prices reached record highs in April, with values rising for the third consecutive month across all major cities, despite global economic uncertainties and the upcoming federal election. Growth was recorded nationwide, with Darwin and Hobart leading monthly gains, and Adelaide also standing out among capital cities. However, the pace of price appreciation has slowed compared to earlier in the year, and both sales and new listings volumes have declined to multi-year lows, reflecting caution among buyers and sellers amid U.S. tariff risks and election-related uncertainty. Economists suggest that anticipated interest rate cuts as early as May could spur renewed growth in prices, especially as policy incentives for first-home buyers are expected following the election. While strong immigration and limited supply have supported the market, challenges such as stretched affordability, cautious lending standards, and slowing population growth may temper future gains. The divergence in home price growth between outperforming and underperforming cities is also narrowing, as previously lagging markets like Melbourne and Sydney start to pick up.