The latest Westpac Housing Pulse report for August 2024 highlighted the ongoing divergence within Australia’s housing market.
While national home prices have continued to grow at a steady pace, the report revealed significant variations across different regions.
“Brisbane, Adelaide, and Perth are powering ahead with strong gains, while Sydney and Melbourne remain more subdued,” said Matthew Hassan (pictured above), head of Australian macro-forecasting at Westpac.
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Despite the steady price growth, the report indicated a softening in property turnover over the past three months.
“Turnover has pulled back and is about flat on a year ago,” Hassan said.
Supply remains tight across much of the country, although there are some early signs of loosening, particularly in Sydney and Melbourne.
New listings have increased slightly, but overall, the market remains constrained, with tight supply conditions contributing to upward pressure on prices in the more robust markets.
Housing market sentiment remains mixed, with price expectations staying near historical highs while buyer sentiment remains low.
The Westpac Consumer House Price Expectations Index declined slightly over the past three months but remains near historic highs, indicating that consumers still expect prices to continue rising.
However, the “time to buy a dwelling” index fell by 6.7%, reflecting ongoing concerns about affordability and the availability of properties.
Looking ahead, Westpac forecasts national dwelling prices to rise by 6% this year, with growth expected to ease to 4% in 2025. This slowdown will likely be driven by cooling conditions in previously booming markets like Perth and Adelaide.
The anticipated RBA rate cuts, now expected to occur slightly later and be milder than previously thought, will provide some cushion to the cooling markets but may not be enough to sustain the rapid growth seen in recent years, Westpac said.
Read full report, Westpac Housing Pulse August 2024.
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