Australia’s residential property market demonstrated resilience, with house and unit prices rising by 0.4% in the past month, according to the latest Ray White Now report.
“The market’s ongoing stability is clear despite the slower pace of growth,” said Ray White chief economist Nerida Conisbee (pictured above).
Though growth has slowed, the market remains steady, reflecting ongoing confidence.
Home price growth varied across states, with Perth leading the way with a 1% monthly increase and an annual rise of 23.2%. Adelaide surpassed Brisbane in yearly growth, with the city showing a 13.0% annual increase compared to Brisbane’s 12.6%.
Australia’s August consumer price index (CPI) result of 2.7% fell within the Reserve Bank’s target range, sparking optimism for potential interest rate cuts in 2024.
Conisbee noted that this development has had a positive impact on the market: “This CPI result falls within the Reserve Bank’s target inflation range, fuelling expectations of potential interest rate cuts in the coming year.”
Over the last year, house prices nationally have grown by 8.3%, reaching an average of $900,122.
Unit prices have also seen robust growth, rising by 6.4% to a national mean of $669,708.
The trend of growth, however, is uneven, with some cities like Melbourne and Canberra seeing only slight monthly increases of 0.2%.
Australia’s regional markets followed national trends, showing solid growth, particularly in Western Australia and South Australia.
Regional Western Australia saw a monthly rise of 0.8% and annual growth of 16%, while South Australia posted a 15.3% annual increase.
Auction clearance rates remained consistent at 66.4% over the past quarter, reflecting stable bidder participation.
However, auction participation has slightly tapered in recent months. With anticipated interest rate cuts and a vibrant spring selling season, the auction market is expected to regain momentum.
Ray White Group reported a surge in upcoming property listings, signalling a strong spring selling season ahead.
Listing activity across the nation is high, with Western Australia and Victoria seeing the biggest growth in volume.
This increase in listings is expected to provide more options for buyers and could temper price competition in the months to come.
Looking ahead, the property market is poised for an active spring, fuelled by optimism over potential rate cuts and increased listings.
“We are likely to see more options for buyers and less competition per property as supply meets pent-up demand,” Conisbee said, signalling optimism for the remainder of the year.
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