Understanding how values in Australian real estate are changing has a fundamental influence on any decision to buy and sell.
Property is recognised as a reliable foundation on which to build your wealth. However, your challenge is to navigate market fluctuations to avoid buying at the top of the cycle.
Right now, Australia’s market is stable, industry data shows.
As an experienced agency, we’re seeing buyers and sellers now reflecting a reality that a program of interest rate cuts through 2025 may not be as aggressive as we’d all hoped.
The current 4.1% benchmark may be chipped away by one or possibly two cuts of 0.25% later this year. The “Big Four Banks” are telling us to be no more optimistic than that.
So, how is this affecting the market?
The latest “Housing Chart Pack” from industry researcher CoreLogic claims national home values rose 0.3% in the three months to the end of February. The capitals moved +0.3% and the regions rose +0.4%.
The less expensive end of the market is dominating price growth. In the so-called lower quartile, values are up 9.4% over the past 12 months.
Overall, the combined value of residential real estate as a national asset held steady at $11.1 trillion, according to CoreLogic.
There were 27,361 sales in January, taking the annual count to 526,410, indicating the market is still transacting in a healthy manner.
Sellers are tending to negotiate a little more. Any discounts offered average 3.5% to seal a deal.
More recent data – auction clearance rates – hover over the 70% mark, which indicates the market may be heating up.
One reason could be that first homebuyers and upsizers realise there’s no point in delaying a purchase in the hope of significant rate cuts later this year.
For investors, rents continue to rise, increasing 4.4% in the year to January. Growth has been slowing since July.