As we step into August, the real estate market continues to thrive with new opportunities and dynamic changes. This month, we’re seeing exciting developments across Australia, from emerging market trends to innovative strategies that are reshaping how we do business.
With CoreLogic’s August Home Value Index (HVI) has just been released with all the latest must-know property market metrics.
In short, while the headline growth rate remains positive, three capitals recorded a decline in values over the past three months with Melbourne falling -0.9%.
Further insights include:
- National home values rose 0.5% in July, the 18th consecutive monthly increase nationally – a figure on par with the 0.5% increase recorded in June. Following a -7.5% decline recorded between May 22 and Jan 23, the national HVI has gained 13.5% and values have consistently pushed to new record highs since November last year.
- However, while the headline growth rate remains positive, it is clear momentum is leaving the cycle and conditions are becoming more diverse.
- Three capitals recorded a decline in values over the past three months. Melbourne led the decline with a -0.9% fall, alongside a -0.8% and -0.3% reduction in Hobart and Darwin values respectively. The rolling quarterly pace of growth has slowed markedly in Sydney to 1.1%, a fraction of the 5.0% quarterly gain recorded at the same time last year. These dynamics are weighing on growth in national home values, which are up 1.7% in the past three months compared to the 3.2% increase seen this time last year.
- The outlook for the housing sector remains complicated. While constraints on new housing supply are likely to keep a floor under home prices and remain a feature of the market for some time yet, downside risks are growing.
Interest Rate Updates – Daniel Niederberger – Base Home Loans
The Reserve Bank of Australia (RBA) has just announced a hold on the cash rate of 4.35% at Tuesday the 6th of August.
With the June 2024 quarter Consumer Price Index (CPI) coming in slightly lower than some expected at 3.8% and monthly unemployment rising to 4.1% in June 2024, this decision reflects the RBA’s cautious approach and intention to monitor data.
Prior to the last RBA meeting in June, predictions from the big four banks estimated we’d be unlikely to see a rate cut before November 2024. Most economists agree with this sentiment and with inflation slowly being brought under control, are predicting the next movement to be a decrease.
Let’s make the most of these final months of the year, staying agile and prepared for the opportunities ahead.
Cheers
Ryan
