Australian Housing Market Recap – February 2024
The Australian property market has shown remarkable resilience in February, with home price growth accelerating despite an influx of new properties hitting the market over summer. According to the latest PropTrack Home Price Index, the national median home value surged by 0.45% last month, while the combined capital city median climbed by 0.48%.
Senior economist Eleanor Creagh noted that the slowdown in home price growth seen at the end of last year has reversed, with prices hitting new peak levels. Factors such as strong buyer demand, population growth, tight rental markets, and the expectation of interest rate cuts have contributed to this robust growth in home prices.
Interestingly, Brisbane has emerged as a standout in the property market, with its median home value now equaling that of Melbourne. The city has experienced remarkable growth, with prices up by 12.16% over the past year, compared to just 1.33% growth in Melbourne.
Looking ahead, experts predict further price rises in 2024, fueled by a slowdown in construction that has limited the supply of new housing. Additionally, potential interest rate cuts may boost buyers’ borrowing capacities, further driving up prices in the housing market.
Overall, despite rising prices and reduced affordability, the property market is expected to continue its upward trajectory, supported by strong demand and positive economic conditions.
