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Traditionally quieter during winter, the Australian real estate market is showing signs of activity despite varying performances across the nation, with an overall trend of rising prices and tight supply.

According to economist Anne Flaherty from PropTrack, the current national real estate market exhibits certain complexities. Despite an increase in the number of homes for sale, strong buyer demand continues to drive price increases. Particularly in capital cities, data for May shows a 0.4% month-on-month increase and 7.2% year-on-year growth in house prices, with remote areas seeing a rise of 5.3%. This indicates sustained buyer interest in properties despite long-term high interest rates.

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The real estate market in Perth is notably active, with house prices rising by 21% year-on-year, accompanied by a 25% increase in home sales. Despite strong market performance, the total number of homes for sale is down by 23% compared to the same period last year, indicating ongoing supply shortages. This tight supply-demand situation in the Perth market continues to fuel brisk property transactions, with many properties selling quickly.

Adelaide and Brisbane's real estate markets also show robust performances, with monthly price increases of 14.5% and 13.7%, respectively. However, despite high market activity, many homeowners looking to sell remain cautious due to inadequate supply. This imbalance between supply and demand creates a tense atmosphere in the market, with many buyers waiting for more listings to meet their purchasing needs.

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However, not all markets are as optimistic. For instance, Hobart has seen a 2% decline in house prices over the past year, and the Victoria region has also experienced a 1% decrease. In Sydney and Melbourne, while there has been an increase in listings, price increases have been relatively moderate, with Melbourne rising by only 0.9%. This illustrates significant variations in market performance influenced by various factors across different regions.

Looking ahead, experts suggest that despite sustained high interest rates and rising living costs putting pressure on the market, the real estate market will maintain a certain level of activity. With the arrival of the new fiscal year, it is expected that more listings will come onto the market, thereby increasing supply. However, market participants need to monitor the impact of interest rate changes on housing demand and consider the potential long-term effects of global and local economic environments on the real estate market.