There are many supportive factors pushing home values higher this Spring season across many areas of Australia. Property is showing exceptional resilience, even with higher interest rates at play.

Ongoing housing undersupply
Dwelling approvals have averaged 13,355 per month over the past six months, which is 23% below the decade average, according to a recent CoreLogic report and The Australian Bureau of Statistics data.

Strong absorption of new listings
National home values grew at a rate of 3% in the June quarter and 2.2% in the September quarter, according to CoreLogic data.

The slowdown in growth is due to higher advertised stock, however, 2.2% is still a strong rate of growth. It indicates a good absorption rate of new listings, which implies demand still outweighs supply in most markets, but buyers certainly have more choice now than at the beginning of 2023.

Interest rates close to their peak
The Reserve Bank of Australia (RBA) has kept interest rates on hold for four consecutive months now. Inflation is trending down but the RBA thinks we won’t return to its target of 2% to 3% until 2025.

Massive population growth via migration
Government projections show we are expecting a net increase in migration of 715,000 people over the next two years alone. A huge percentage of migrants start their new lives in Sydney and Melbourne, so this will be a significant driving factor behind higher home values and rents there.

Population concentration in our cities

Census figures show 67% of Australians choose to live in one of just eight capital cities. This is a unique element in the Australian housing market that supports ongoing, long term price growth.

In conclusion…
CoreLogic has identified the official end to the market correction in almost every capital city and regional area.
Hobart, regional Tasmania and regional Victoria are bottoming out, so buyers have limited time to take advantage of corrected prices before these markets start moving up alongside the others.