Year-on-year, we are now recording the strongest growth since July 2022. Australian house prices increased by 6.1 per cent while units increased by 4.3 per cent over the past 12 months. While there was speculation that house price growth would slow once more properties became available for sale, this doesn’t seem to be the case. Buyer demand remains robust, despite finance costs and the relative difficulties in getting a home loan compared to 18 months ago. In July, we saw prices decline slightly but this was more than reversed in August. The July fall was likely due in part to the surprise interest rate rise in June, as well as the first increase in properties available for sale. In August, the markets that saw the biggest price falls last year saw the biggest increases last month. While surprising that demand for housing is so high in such a high interest rate environment, it reflects strong population growth and a reduction in new home construction. Continuing strong rental growth conditions are leading more people to consider buying their own homes, while a lack of new home builds are pushing more into the established home market. With interest rates at or close to peak, it’s likely greater certainty about where rates will settle will also be a factor. If you’re considering a move, buying or selling, give our expert team a call. We look forward to helping you realise your property goals. Mark Roffey Principal, Ray White Maitland WHAT’S HAPPENING IN OUR MARKET?
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