Listings to tick upwards and prices to hold firm
- Written by: Tim McKibbin
As spring approaches we expect listings to trend gently upwards and prices to hold firm.
CoreLogic data shows Sydney is leading the nation when it comes to the rebound in prices. In the three months to July, dwelling values in Sydney rose 4.5%, outperforming the national increase of 2.9%.
Prices now sit just 2.1% below last year’s levels, when the interest rate rises began to kick in.
It’s good news for property owners but it also shows the lack of inroads that have been made on affordability.
On the rental front, CoreLogic research shows as of July, national rents increased for the 35th consecutive month.
We can expect more politicising of the housing debate this week but until more homes are built, the affordability issue will remain unaddressed.
Regrettably, new supply is not forthcoming at the rate required and dwelling approvals are moving in the wrong direction.
ABS statistics show dwelling approvals dropped 7.7% in June and conditions are not conducive to developers commencing new projects.
The cost of finance has risen and high materials costs are putting pressure on project feasibility.
What’s clear however is the strength of demand. This will continue to increase.
