Australia house prices rise but growth slows in Sydney and Melbourne, Cotality says

Core Insights - Australian home prices increased by 1% in November, reaching a median value of A$888,941 ($581,990), with a year-to-date rise of 7.5% [2] - The growth in home prices was primarily driven by smaller state capitals, while Sydney and Melbourne experienced slower gains [2][4] - The Reserve Bank of Australia's interest rate cuts have been limited by rising inflation, affecting housing market sentiment [3][4] Price Trends - Home prices in Perth surged by 2.4% in November, and Adelaide saw a 1.9% increase, contrasting with Sydney's 0.5% and Melbourne's 0.3% growth [2] - The 1% rise in house prices marks the third consecutive month of strong gains, raising concerns about financial conditions and inflation [4] Market Sentiment - Expectations of no imminent interest rate cuts are undermining sentiment in Sydney and Melbourne, which are already expensive markets [1][4] - Auction clearance rates in Sydney and Melbourne remained in the lower 60-70% range, below the decade average [3] Regulatory Environment - The banking regulator plans to impose a cap on high debt-to-income home loans starting in February to mitigate housing risks [5] - Experts predict that housing gains may slow in 2026 due to poor affordability and a less favorable outlook for interest rates [5]