Australia's national home prices rise at solid pace in March, but Sydney and Melbourne slip

SYDNEY, April 1 (Reuters) - Australia's housing prices rose at a solid pace in March, though higher borrowing costs and geopolitical jitters led to a small slip in the biggest cities, Sydney and Melbourne, data from Cotality showed on Wednesday.

The Reserve Bank of Australia has raised interest rates twice this year in February and March to 4.1% to tame inflation, reversing two of the three rate cuts made last year. The Middle East conflict has also darkened the economic outlook and hit consumer sentiment.

KEY DETAILS

• National home prices rose 0.7% in March to a record median value of A$933,137 ($639,012.22), figures from Cotality showed, slowing a little from the 0.8% gain the previous month.

• Prices in Perth surged 2.5%, while Brisbane and Adelaide gained 1.8% and 1.2% respectively, driven by still-low inventory levels.

• House prices in Sydney and Melbourne slipped as Cotality noted falling auction clearance rates and a pickup in new listings. Melbourne prices fell 0.2% in the month, while Sydney dropped 0.1%.

• "With inflation and interest rate uncertainty still front of mind, confidence weaker and listings rising, the near-term balance of risks is tilted to the downside," said Cotality.