Australia's Housing Market Hits New Highs in March

Australia’s Housing Market Hits New Highs in March

By: Nfinity Financials0 comments

In Australia, even though the real estate world has been weak-kneed lately, the housing market stands to be growing. Recent stats show that home prices are shooting up to all-time highs in March, and there’s no indication that this growth will stop anytime soon.

The report shows that in March, home prices shot up by 0.34% across the country. Over the whole year, they’ve gone up by 1.57%, and compared to March last year, there’s been a big 6.79% increase. Economists say this happened because more people are wanting to buy homes. Even though more homes are being put up for sale, there are still plenty of first home buyers, which keeps pushing prices up.

Big cities like Perth, Canberra, and Brisbane have seen impressive growth. In just one month, Perth went up by 0.99%, Canberra by 0.67%, and Brisbane by 0.41%. These cities aren’t just hitting new highs for prices, they’re also showing amazing growth rates over the whole year. Perth is leading with a huge 18.62% increase, followed by Adelaide at 13.47% and Brisbane at 12.90%.

Even smaller towns and areas outside the big cities are seeing growth, though it’s not as fast. Regional South Australia and Queensland are leading the way here. But in regional Victoria, things are a bit different, with a small decrease of 0.35% instead of going up.

The Reserve Bank decided to keep the cash rate the same at 4.35% in March, which is good news for the housing market. But there are still some challenges ahead like construction costs going up and shortages of materials, which could affect how the market works in the future.

City-specific insights for the Australian housing market:

  • Sydney: Even though there have been some tough times lately, Sydney’s housing market has bounced back and hit new highs in March. This is because there are still a lot of people wanting to buy homes, keeping demand strong.
  • Brisbane: Brisbane is doing well, showing strong growth over the whole year and getting off to a good start in 2024.
  • Perth: Perth is doing the best in the whole country when it comes to growing month by month and over the whole year. This is because it’s affordable and more people are moving there.
  • Darwin: Darwin’s market is growing slowly, but it hasn’t reached the high levels it has in past years yet.
  • Melbourne: Melbourne is slowly getting better, and the growth in March shows it might be turning around for the better.
  • Adelaide: Adelaide is doing well because it’s affordable and there aren’t too many houses for sale.
  • Hobart: Hobart’s market has gone down a bit, and it’s still the slowest-growing capital city market over the whole year.
  • ACT: Canberra’s market is getting better, and March showed the best growth over the whole year since 2022.

The report highlighted a consistent upward trend in prices over the past 14 months, driven by a persistent undersupply relative to demand in the housing market. Experts underscored the significance of factors such as housing affordability, population influx, and regulatory constraints on housing construction, all of which contribute to determining property values.

Experts agree with these ideas, saying it’s important to understand how factors like more people moving in and fewer houses available for rent, along with problems like higher building costs and not enough workers, all affect the housing market. Because of this, we can expect prices to keep going up for a while.

Some economists are worried about problems like not enough new buildings being made and more people wanting to buy houses because they think interest rates will go down. But overall, the big picture is still about the housing market being strong and growing. 

Conclusion

The big jump in home prices in March shows how strong and lively Australia’s housing market is. Even though there are still some challenges, most people are feeling hopeful and see lots of opportunities. It looks like the market could keep growing steadily in the coming months.

If you need assistance with financial planning or mortgage advice, consider reaching out to Nfinity Financials for expert support on your journey to homeownership. Seeking more such information? Call 1300 GET LOAN for a personalized solution.

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