Australian Housing Market Update

Australia’s housing markets rebound continued over the last month, led by strong price growth in our two biggest cities, Melbourne and Sydney. Since bottoming out in June earlier this year, the national dwelling value index has recovered strongly. Home buyers are back, sellers are putting their properties up for sale, first home buyers are getting a foot on the property ladder and investors are slowly returning.

They are all buoyed by falling interest rates, the prospect of another rate cut early next year, less stringent lending criteria and a generally positive media. This now marks the fifth consecutive month of price gains in Melbourne and Sydney, which was where the downturn hit the hardest over the last couple of years.

As a result, auction clearance rates are up, asking prices are up, property values are increasing and some property commentators are even forecasting double digit capital growth next year.