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Real Estate Market Recap May 2024

The housing market in Australia has been showing growth throughout 2024. Despite repeated interest rate hikes in the past two years affecting mortgage affordability, the demand for housing remains strong. 

But have Australian housing prices continued their upward growth trend? And how are the capital cities performing? Find out all in this real estate market recap of May 2024.

Key Points

Market Overview

The Australian real estate market looked good in May with continued growth. Compared to May 2023, May 2024’s national unit prices are 6.5% higher than they were then. The national capital city median house price increased by 0.3% during May 2024, to $1,134,494. 

The collective national median unit price also rose, by 0.8%. Most capital city unit prices showed growth in May, except Canberra and Hobart, whose median prices decreased. 

While Sydney has the highest median unit price of $770,171, Adelaide sees the highest monthly increase of 3.2%. The two next-best performers were Brisbane and Perth, each with a monthly increase in their median prices of 2.3%

The National Home Value Index (HVI) rose 0.8%. Australia’s median dwelling price is now $785,556.

Relevant News

High interest rates continue to put pressure on housing affordability. As reported by ABC News, the demand for housing remains high, yet by international standards, the supply is low with fewer dwellings per 1,000 people. 

That is lower than the Organisation for Economic Co-operation and Development (OECD) average, and a cause for concern. This is certainly not unique to Australia, as Canada, the US, and England are also below the average. 

However, this lack of supply to meet demand and the decline in affordability has been noted by the Reserve Bank of Australia (RBA). 

In their May 2024 statement on monetary policy, the RBA stated that housing prices and rents continue to rise while supply has not kept up with demand for housing. The reasons cited for this disparity in demand and supply include strong population growth vs increased construction costs and capacity constraints. 

If you want to know more about the government’s approach to the housing system, the National Housing and Affordability Council has released this document on the State of the Housing System 2024.

Conclusion

In May 2024, median property prices continued to rise, particularly in the capital cities.  However, the current housing demand outstrips supply, and affordability is in crisis. As housing prices remain high across the board, it remains to be seen what will happen next. 

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