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 There have been a lot of people, events and policies blamed for Australia’s low levels of housing affordability. Ranging from negative gearing, high interest rates, investors, developers, migrants, students, planners, government and the list goes on. And while the reasons are complex, there … Read more
Nerida Conisbee Ray White Group Chief Economist Perth, Adelaide and Brisbane continued their runaway growth in May with all cities now recording year-on-year growth of in excess of 14 per cent. Perth continued its strong run with prices up over 24 per cent over the past year for houses and … Read more