Just like that, we’ve wrapped up 2023/24 and are now stepping into the new financial year of 2024/25. This is the perfect opportunity to reset your goals and metrics for the year ahead. Be sure to finalize your Strategic Business Plan, because remember: failing to plan is planning to fail.
Going to the market, let’s take a closer look at the Real Estate Market in Australia and New Zealand.
Australian Market Overview
The 2023-2024 financial year has been remarkable for Australian homeowners, with an average wealth boost of $59,000 from rising house values. CoreLogic Insights reports a 0.7% increase in June, contributing to an 8% growth for the year, resulting in an average median dwelling value of $794,000. Despite a dip in the previous year, the market has rebounded strongly.
New Zealand Market Overview
In contrast, New Zealand’s market has seen renewed weakness in home values:
- Monthly Decline (June): -0.5%
- Quarterly Change: -0.8%
- Annual Growth: 1.8%
This equates to a $16,000 boost in homeowner wealth, driven by a temporary 3.2% rise in prices between September 2023 and March 2024. However, high mortgage interest rates continue to restrict housing credit demand, leading to flat or falling prices in major centres.
To conclude, Australia is experiencing robust growth, especially in Brisbane and Perth, while New Zealand faces challenges with high interest rates and restricted credit demand. Both markets show continued housing demand, with interest rate changes crucial for future movements.
Have a great new financial year!
Cheers
Ryan
