RESIDENTIAL PROPERTY
HIGHER median home values and rebounding housing stock has seen Australia’s housing market has hit the $10 trillion value mark again.
According to CoreLogic’s latest Property Pulse report, thus us the first time the total estimated value has hit this mark since June 2022, after recovery from the...
This as the median home value in Australia hit $732,886 at the close of August and the stock of housing soared to around 11 million properties...
Since recovery in home prices began in March, values have climbed by 4.9% through to the end of August...
This offset about half of the impacts of the downturn between April 2022 and February 2023, where home values fell -9.1% peak to trough nationally...
“The recovery trend in values comes despite a cost of living crisis, low consumer sentiment levels and four increases in the cash rate so far this year...
The report outlined four key explanations for ongoing housing recovery, including net overseas migration, the use of savings, profit and equity by...
The return of overseas migration after COVID-19 travel restrictions, when combined with a drop in overseas departures may be increasing demand...
Especially when also combined with the low average number of people per dwelling across the capital cities, as rental vacancies remain at...
Home buyers may also be drawing from savings, equity or profits from previous home ownership to use towards property purchases instead...
“This would also help to explain why home values have continued to rise in the past few months, as ABS reported a fall in the value and volume of lending...
“However, it is uncertain how long households can draw on savings to support purchases. ABS national accounts data shows the household saving ratio...
Finally, Australia’s total listings volumes are still holding relatively low, despite increased housing stock and the return of the spring selling...
For the four weeks ending 3 September, total national listings came in at around 136,000, or 23.4% below the previous five-year average...
Despite increasing housing values over the last half year, the outlook for the housing market is still unclear...
“While there is a growing expectation that the RBA board is done hiking the cash rate, borrowing remains constrained by a relatively high serviceability buffer...
“Economic performance is also set to unwind, and while this is good news for the inflation and cash rate trajectory, a rise in unemployment may create...
“CoreLogic is expecting some heat could come out of the recent recovery trend toward the end of this year, while a more robust recovery in housing values will be...