Nerida Conisbee,
Ray White Chief Economist
Recovery in prices for established homes has taken a lot of people by surprise but highlights that market dynamics aren’t purely driven by interest rates. The problems we are having in the construction sector and with rental growth are going to mean that price growth will continue, driving prices back to where they were at the start of 2022 within the next six months.
The number of new homes being approved is now trending to its lowest level in over a decade. In February, 12,661 dwellings were approved, a 30 per cent decline from 12 months ago. In historic terms, this is exceedingly low but many of these homes will not be built quickly given construction cost increases. Many people who would otherwise have bought a new home will be pushed to the established market. Either because the cost to build a new home is too high, it is difficult to find a builder or simply there is no availability in the suburb they want to live in.
Nerida Conisbee Ray White Group Chief Economist The Australian housing market is showing clear signs of moderation as 2024 draws to a close, with the national house price median reaching $898,745, up 7.7 per cent annually but with monthly gains easing to 0.4 per cent. This deceleration in price growth reflects … Read more
Nerida Conisbee, Ray White Chief Economist Analysis of buyers at almost 10,000 Ray White auctions continues to show that Queensland’s property market remains the strongest in Australia for both investors and people buying from other states. While Melbourne is rising in popularity with interstate buyers, it is still being eclipsed … Read more