Mid-April Property Price Update
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
In April we continue to see an improvement in buyer sentiment, and this can be highlighted by improving Auction clearance rates. We’ve also seen the property price index rise further in April, with Brisbane property prices rising by 1.1% this month so far. There is a clear correlation between auction clearance rates and property prices, which is highlighted in the chart below, thanks to My Housing Market. The other chart provides insight into price gains in April, year on year and over the past two years. Perhaps we haven’t seen the peak of this property cycle yet.
A US report I read this week suggests that we haven’t seen the peak. Based on the 18.6-year market charts, they expect in the US prices will peak later in 2026. On all accounts, it seems the property market in Australia is showing much resilience. Over the last 12 months, we’ve seen house prices decline, however, at the moment we are starting to see signs of improvement. The shortage in the availability of properties is helping to keep prices firm. With many homeowners choosing to stay in their homes longer and a growing population, it is likely we will gradually see Aussie living trends change. More high-density living and the number of residents occupying the property will decrease. Immigration numbers over the past decade have been about 391,500 per annum, however over the next decade, the estimates are 487,000 per annum. Housing trends may need to be adjusted to accommodate this population growth.
In other news, the RBA this week announced that from July next year, the RBA will only meet eight times a year instead of the current 11 meetings. This will mean that while we will have less frequent cash rate adjustments if adjustments are to be made, they may be more significant amounts. The inflation target will remain between 2% and 3%.
Many buyers and homeowners are currently asking me about interest rates and what to expect moving forward. While I believe we may see one or two more rises this year, it is expected that we may see an easing in the cash rate later in 2023 and into 2024. More reason why I believe that property prices may rise further over the next few years. Using our preferred lenders, we are also helping buyers and homeowners save money by providing the best possible interest rates around. If you are looking to refinance or purchase, get in touch so we can assist you in achieving your desired results.
AUCTION CLEARANCE RATES
- Queensland – 43% (212/1054)
- NSW – 60% (717/1533)
- Victoria – 67% (639/1092)
- ACT – 54% (81/77)
- South Australia – 59% (61/337)
- Tasmania – NA (2/193)
- Western Australia – NA (11/672)
- Northern Territory – 33% (3/14)
REVIEW(S) OF THE WEEK
Great Experience – Leigh is Highly Recommended
This was our first home purchase and Leigh was a pleasure to deal with from the get-go. Professional, friendly and extremely quick to respond to any questions or concerns we had. He made our first purchase an easy experience and I would highly recommend him to anyone looking to buy in the area! – Buyer
Great Experience Purchasing Our Home
As a buyer, we experienced understanding and great communication from our first inspection right throughout the entire process. Leigh is a very professional and passionate agent. Highly recommend – Buyer