As the cooler temperatures slowly arrive, the same cannot be said for the housing market as it continues to heat up.
The latest CoreLogic figures revealed house prices rose for the 15th month in a row across the country in April. The national median dwelling value is now $779,819.
Sydney remains the most expensive place to buy, with the median now at $1.4 million, while Melbourne was the only city to see a slight fall in prices in April. Locally Perth recoreded a further 2.0% increase.
If you’re considering a winter property purchase and want to get your property dream on track, chat with us about getting your finance pre-approved today.
Interest rate news
The Reserve Bank of Australia (RBA) kept the cash rate on hold at 4.35 per cent at its latest meeting.
And while the news is positive for struggling homeowners, many are wondering how long the reprieve will last as the RBA continues to battle inflation.
Michele Bullock, the RBA governor, has not ruled out future increases to the cash rate. She stated that the war against inflation “isn’t yet won” and described the risks to its outlook remain “finely balanced”.
While some economists have predicted further rate hikes are a near-term possibility, with potential cuts expected to occur at a slower pace, the latest Roy Morgan data reveals a stark reality: more than 1.5 million mortgage holders were at risk of mortgage stress in March 2024.
If you’re one of them, get in touch and we will run you through your finance options, including whether there’s a more competitive home loan available to you.
The RBA board meets next on June 17-18.
Home value movements
National housing values rose 0.6% in April, with low supply continuing to drive up prices.
Perth topped the growth charts with a rise of 2% in April, followed by Adelaide at 1.3% and Brisbane at 0.9%. Meanwhile, Melbourne property prices fell -0.1%.
“We aren’t seeing any signs of heat coming out of the Perth housing market just yet, in fact the quarterly pace of growth, at 6.0%, is approaching the cyclical highs seen during the pandemic when interest rates were at rock bottom,” CoreLogic research director Tim Lawless said.
“On the other hand, we are seeing the pace of gains slow across the Brisbane market, easing below the 1% mark to 0.9% in April for the first time in 12 months.
“Affordability pressures may be impacting the pace of growth across the city, following a nearly $300,000 increase in values since the onset of COVID in March 2020, the largest dollar value increase of any capital.”
Regional markets showed a slightly stronger quarterly growth rate over the past five months compared to their capital city counterparts.
Regional WA (+5.3%) led the way, followed by Regional SA (3.9%) and Regional Queensland (+3.2%). Regional Victoria (-0.1%) was the only rest-of-state market to record a decline in values over the rolling quarter.
Perth Market
The Perth market continues to grow faster than the other Australian cities. Last month’s 2% increase takes the annual growth to 21.1%.
Latest market data from REIWA shows week ending 19th May that 887 sales (houses, units and land), compared to 922 four weeks ago and 910 the same to last week. Property listings last week were only 3,511 compared to 3,818 four weeks and 5,968 the same time last week.
Rental market continues to be tight for renters, REIWA detailing that only 2,326 properties available.
Source: CoreLogic
* Monthly Home Values figures as of 30 April 2024
* The clearance rate is preliminary and current as of 3:00 pm, 14 May 2024
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