Australian house and unit prices have taken a break from robust increases in recent weeks, with both house and unit property types recording no significant change in median prices. While volumes have been down, both vendors and purchasers were a little quiet during the month of March waiting for the Easter period and subsequent school holidays to end. Sentiment, however, remains high with expectations surrounding interest rate reductions still on the cards, likely to result in greater activity in May and beyond. The median Australian house price currently sits at $869,843, representing a 10.4 per cent improvement over the last 12 months. Units continue to grow at a slower pace, recording a 7.9 per cent increase over the same period to a median of $643,086. Total median house price growth in regional Australia has moved similarly to metropolitan results, in the quest for affordable housing choices or investment opportunities. This is most apparent in the improved prices across New South Wales and Victoria, both up by 0.4 per cent in March, yet growth lags behind on an annual basis. The outlook for price growth is a problem for affordability. Unfortunately, rising construction costs have made building new homes far more expensive and this price growth of existing homes has to occur to make buying new homes relatively cost effective. Right now, many people, particularly first home buyers, are being pushed into the established home market given it’s cheaper to buy than build. If you’re considering a move, get in touch with us for a chat about local market conditions and options. We look forward to helping you realise your property goals. Matthew Kidd Principal, Ray White Bensville/ Empire Bay WHAT’S HAPPENING IN OUR MARKET?
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