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Real Estate Market Recap February 2024

Australians have experienced high borrowing rates due to high inflation since 2022. Many are filled with uncertainty about whether or not interest rate cuts are on the horizon. Regardless of these very valid economic pain points, property prices have steadily climbed to meet the high demand for housing. 

This is our real estate market recap for February 2024.

Key Points

Market Overview

Australian housing values in January and February continued to climb. In February, national home prices reached a record high, increasing by 0.45%. This is the strongest gain since October last year, driving property prices up by 6.15% compared to a year ago’s prices. 

Buyers currently have more choices, as 2024 has seen more property listings. Property auction volumes have remained high, too, during January and February. All capital cities saw a monthly increase in these auction volumes, with Sydney showing the highest clearance rate of the capital cities.

This increase in available properties, both for sale and on auction, is well-timed. Demand has remained steady during January and February. 

Sydney’s Median Value hit $1,128,155, far higher than the $765,762 National Median Value. Melbourne hit a Median Value of $778,941.

Property prices remain consistently affordable in Hobart, with a fall in property values of -0.3% and a Median Value of $652,645. This is not unexpected as Hobart does not see the same type of demand as cities like Melbourne and Sydney.

Relevant News

Back in 2023, when news reports predicted a record high for Australian house prices, they were not wrong. This upward swing has continued in February, despite financial hardships due to high inflation and the rising cost of living. The Reserve Bank of Australia’s interest rate hikes last year saw mortgage holders experiencing financial strain. 

Looking at recent housing demand and property prices, the Australian property market is still in a period of growth. It continues to be a seller’s market, although buyer confidence is growing. However, as reported by ABC News, the price gap in apartments and houses in Australia has continued to widen.

In the RBA overview of the past month, the bank acknowledges that the share of household incomes allocated to meet mortgage payments is high. And although housing credit growth is lower than in 2022, new lending has risen since 2023.

Despite the higher cost of borrowing and other economic woes that may prevent people from buying property right now, the Australian housing demand remains high.

Conclusion

Regardless of high interest rates and economic hardships, Australian demand for housing remained high in January and February 2024, alongside a continuation of the uptick in housing values since 2023. By all indications, buyer demand remains high, as many are hopeful for an interest rate cut later in the year. .

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