Property Market Update – June 2024

Winter is here, and for savvy property hunters, it could be a cool time to snap up a bargain.

The benefits of buying in winter are that there’s often less competition amongst buyers and you get to see the property during a less flattering time of year, so you know what you’re in for.

The property market continues to perform strongly, with the latest CoreLogic figures revealing house prices increased in all capital cities except Hobart and Darwin in May. Perth experienced the largest capital growth during the month at 2%.

If a winter property purchase is on the cards, chat to us about getting your finance pre-approved today.

Interest rate news

The Reserve Bank of Australia (RBA) Board decided to keep the cash rate on hold at 4.35 per cent at its latest meeting.

Inflation is continuing to ease, but is falling more gradually than previously expected, according to the RBA.

“Inflation has fallen substantially since its peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the RBA Board said in its monetary statement.

“But the pace of decline has slowed in the most recent data, with inflation still some way above the midpoint of the 2–3 per cent target range.

“Over the year to April, the monthly CPI indicator rose by 3.6 per cent in headline terms, and by 4.1 per cent excluding volatile items and holiday travel, which was similar to its pace in December 2023.”

It would appear homeowners may have to put any hopes for a cash rate cut on ice for the time being.

“The Board expects that it will be some time yet before inflation is sustainably in the target range,” the RBA Board said.

“The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out.”

The Board meets next on August 5-6. To explore your home loan options, get in touch today.

Home value movements

National housing values rose 0.8% in May, the 16th consecutive month of growth and the largest monthly gain since last October.

Perth topped the growth charts with a rise of 2% in May, followed by Adelaide at 1.8% and Brisbane up 1.4%. The other capital cities experienced milder home value changes.

CoreLogic research director Tim Lawless said extremely low levels of available supply across the strongest markets provided the best explanation for the difference in growth rates.

“The number of properties available for sale in Perth and Adelaide remain more than -40% below the five-year average for this time of the year, while Brisbane listings are -34% below average,” Mr Lawless said.

“Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year.

“Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.”

On the other hand, listings across Hobart are tracking 41% above the five-year average because of lower demand, with home sales -6.4% below the previous five-year average over the rolling quarter.

Meanwhile, growth in regional Australia’s housing values and rents continues to pick up pace, with both reaching new record highs.

* Monthly Home Values figures as of 31 May 2024

* Australian auction results, clearance rates and recent sales for the week ending 16 June 2024

* The clearance rate is preliminary and current as of 5:30 am, 17 June 2024

Looking to buy this winter? The first step is to chat to us about how much you can borrow and get your finance pre-approved. That way, you’ll be ready to make an offer or bid at auction when you find the right property for your needs.

Let’s chat about your finance options. Please contact us for assistance.

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