House prices have climbed for a second consecutive quarter as more buyers compete over a small pool of homes up for sale.
Property prices have staged a major turnaround, with the latest data from Domain revealing the steepest quarterly gain in capital city house prices since late-2021.
Unit prices increased for the first time in over a year.
Sydney has led the recovery, regaining nearly two-thirds of the ground lost during the slowdown.
Overall, house prices have clawed back 3.4 per cent of the 5.6 per cent lost during the 2022 downturn.
Other home price measures, including those produced by CoreLogic and Proptrack, have also been tracking up strongly.
Domain chief of research and economics Nicola Powell said an unusually weak flow of new listings, paired with higher demand, was pushing prices up.
For combined capitals, the total number of homes for sale is 22 per cent below the five-year average.
But she said more homes would likely come on the market soon as the rebound attracted more sellers to the market.
She also said more home owners may be forced to sell as higher mortgage costs and inflation start to bite.
"As housing confidence improves, and as the mortgage cliff unravels, we could begin to see a slowdown in price growth as listings continue to rise, and those looking to buy have greater choice”, Dr Powell added.
