Property Market Update – March 2024

Autumn has arrived, and what better season to turn over a new leaf with an exciting new property purchase?

At its latest meeting, the Reserve Bank of Australia (RBA) decided to keep the cash rate on hold. Economists are increasingly anticipating a rate cut later in the year.

Property values are still on the rise. In February, prices were up 0.6% according to CoreLogic. All capital cities except Hobart recorded a rise in values.

If you’re planning to buy soon, please get in touch about getting your finance pre-approved.

Interest rate news

At its second meeting for 2024, the RBA decided to keep the cash rate on hold at 4.35 per cent.

The RBA has previously indicated it could not rule out another cash rate increase because it expected that it would be some time before inflation was sustainably within the target range of 2-3 per cent.

With the economy cooling and inflation slowing, some economists are optimistic that the next move by the RBA will likely be a rate cut, potentially in September.

Meanwhile, a Real Estate Institute of Australia (REIA) report found the average household is now spending just under 48 per cent of their income on mortgage repayments.

According to Roy Morgan, a new record high total for mortgage holders were considered “at risk” of mortgage stress in the three months to January.

If you’re concerned about covering your mortgage repayments, talk to us and we’ll run through your options.

Stay tuned for the next RBA cash rate decision, due May 7.

Home value movements

In January, property prices were up 0.4% across the capital cities, then in February we saw a slight acceleration to 0.6%.

Perth led the way, with prices up 1.8% over the month. Meanwhile, in Hobart, prices fell -0.3%.

“Housing values have been more than resilient in the face of high interest rates and cost of living pressures,” CoreLogic research director Tim Lawless said.

“The ongoing rise in housing values reflects a persistent imbalance between supply and demand which varies in magnitude across our cities and regions.”

* Monthly Home Values figures as of 29 February 2024

* Australian auction results, clearance rates and recent sales for the week ending 17 March 2024

* The clearance rate is preliminary and current as of 9:30 am, 18 March 2024

Before we go, we’d like to take the opportunity to wish you a safe and happy Easter with your loved ones. If you’re planning a property purchase sometime soon, please contact us for assistance about getting pre-approved on your home loan today.

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