New data from CoreLogic suggests property prices are set to rise. With that said, we might be near the end of the housing downturn.
While Australia’s median property price fell 0.1% during February, values then rose in some markets in the four weeks to March 15:
- Sydney – up 0.8%
- Melbourne – up 0.2%
- Perth – up 0.1%
- Brisbane – unchanged
- Adelaide – down 0.4%
Tim Lawless, executive director of research at CoreLogic, asserts that it is too soon to predict the market’s bottom.
He added that interest rates may rise further from here. This is mainly due to we have not yet fully assessed how the aggressive rate hike cycle to date has affected households.
Additionally, economic conditions are set to weaken through the middle of the year. This is mainly caused by drained household savings buffers and the further loosening of the labour markets.
Mr Lawless said, one of the key metrics to watch would be the flow of new property listings. Because a relative increase in supply would lead to a relative decrease in demand, it could be a signal this recent trend of growth has run out of steam”.
With property prices set to rise, it is worth looking into buying a property now, than later in the year in order to take advantage of lower property prices. If you’d like more information, please contact us and we”ll be happy to discuss your plans.