Australia’s median property price has now increased for 18 consecutive months, after rising another 0.5% in July, according to CoreLogic. This sustained growth has seen the national median price increase by a remarkable 13.5% over this period, achieving new record highs since November 2023.
The consistent upward trend in property prices underscores the robust demand and limited supply in the Australian real estate market. However, CoreLogic’s recent analysis indicates that there might be some cooling off in the market dynamics.
CoreLogic reports that “the underlying mismatch between housing supply and demand looks set to support housing prices through the second half of the year. However, there does seem to be some rebalancing underway.” This statement points to a potential shift as the market adjusts to new conditions.
One of the factors contributing to this shift is the rate at which real estate listings have been appearing on the market. CoreLogic notes that “real estate listings have been flowing onto the market at a pace slightly above average through autumn and winter, which has been testing the depth of buyer demand.” This increase in listings suggests that while demand remains strong, the market is experiencing a slight rebalancing as more properties become available.
The Current State of the Market
The 18-month streak of rising property prices reflects a broader trend of sustained demand amidst limited housing supply. This trend has been driven by various factors, including historically low interest rates, increased buyer confidence, and a strong economic recovery post-pandemic. The persistent demand has kept prices on an upward trajectory, even as the market faces new listings and potential rebalancing.
What Does the Future Hold?
While CoreLogic anticipates continued support for housing prices due to the supply-demand mismatch, the potential rebalancing could lead to a more stabilized market in the coming months. The ongoing flow of new listings may provide some relief to buyers who have been facing intense competition and escalating prices.
However, the market’s ability to absorb these new listings without a significant drop in prices will be a key factor to watch. If buyer demand continues to be strong, prices may remain elevated, albeit at a more moderated pace. On the other hand, if the influx of listings outpaces buyer interest, we could see a slowdown in price growth.
Conclusion
Australia’s property market remains dynamic, with prices continuing to rise amidst evolving conditions. The recent data from CoreLogic highlights both the sustained demand and the potential for market rebalancing. As the second half of the year unfolds, all eyes will be on how the market adjusts to these changes and what it means for buyers and sellers alike.
For now, the 18 consecutive months of price increases stand as a testament to the resilience and desirability of Australian real estate. Whether this trend will continue or stabilize remains to be seen, but one thing is certain: the Australian property market is one to watch closely.