Data from PropTrack suggests that 2024 could see a new peak in real estate prices.

Australians should prepare for a new market peak by next year, experts warn, should property prices continue to rise at the rate they have in recent months.

According to new data, Australians looking to purchase real estate can anticipate prices to reach a new high by the start of next year.

According to the most recent PropTrack Market Insight Report, the new peak could occur within the next six months if real estate prices grow at the same rate they have over the past quarter.

Eleanor Creagh, senior economist at PropTrack, noted that the report indicated that in 2023, more people will experience stronger market conditions.

The increase in international migration and the extremely competitive rental markets, according to Ms. Creagh, have likely increased housing demand.

Because there isn't much new inventory entering the market, buyer interest is concentrated, which supports home prices and counteracts the downward pressure from interest rate increases, according to Ms. Creagh.

"National property prices will surpass their prior peak by January 2024," according to data from the previous quarter.

It comes after the Reserve Bank raised rates to an 11-year high and issued a warning that additional rate increases may be forthcoming.

Ms. Creagh warned that the market recovery is anticipated to slow down even more if interest rates continue to rise, as they did in June.

However, Ms. Creagh noted that interest rates are more likely than not approaching their peak and that the shock of rate increases has subsided.

A housing shortage, tight rental market conditions, and population growth are also anticipated to persist.

Most capital city markets would return to positive annual price growth in the upcoming months if stronger demand holds up against the anticipated slowdown in the economy.

According to the Prop Track data, property prices may reach their potential peak in January 2024 after declining by 4% in 2022 from their peak in March 2022 to their low in December 2022.

The data show that national home prices have increased 1.55 percent since their December low and are currently only 2.6 percent below their peak.

Sydney prices may reach their peak by December 2023 if they continue to rise at the same rate after rising 3.0 percent from their November 2022 low.

If growth continues at the current rate, Brisbane may surpass their April 2022 peak by September 2023, and Canberra may break their own record by November 2024.

Having increased by 2.6% and 3.1%, respectively, so far this year, house prices in Adelaide and Perth also hit a new high in May.

According to the report, both capital cities will continue to experience price increases through 2023 if the rate of growth in real estate prices is maintained.