John McGrath reviews market at end of financial year

As we approach the end of the financial year, the real estate market in Australia is showing signs of change and opportunity. Prices are beginning to stabilize across states, with expected interest rate cuts in the upcoming fiscal year likely to attract more buyers into the market and lead to more consistent price increases.

Major markets such as Brisbane, Adelaide, and Perth have seen a softening in prices, creating a favorable environment for buyers with reduced competition and slower price growth. Data from Cotality indicates that dwelling values in Brisbane rose by 7.1%, and in Adelaide and Perth by 8.6% over the past year, with apartments outpacing houses due to affordability constraints.

Sydney’s market has cooled slightly, while Canberra is experiencing a rejuvenation in home values. On the other hand, Melbourne and Hobart have shown signs of recovery, with Melbourne experiencing a slight decrease in home values and Hobart seeing a modest increase.

Similar trends are visible in regional markets, with traditionally strong regions cooling down, while neglected areas are gaining new interest from buyers. Regional Western Australia, South Australia, and Queensland have shown strong growth in home values, with other regions like Tasmania and Victoria experiencing more mild growth.

As the fiscal year concludes, the current market presents opportunities for both buyers and sellers. Buyers stand to benefit from competitive prices and renewed interest in the market, while sellers who market their homes effectively can expect positive results.

Economists are predicting further rate cuts in the upcoming fiscal year, with analysts suggesting that this may have a significant impact on the Sydney market due to existing affordability constraints. The resumption of mortgage wars among banks offering competitive rates is also expected to support continued market activity.

Although housing supply remains limited, demand remains strong, driven by downsizing baby boomers, active investors, and renters transitioning to home ownership. Rent increases across capital cities and regional markets have sparked increased investor activity and encouraged more renters to enter the property market.

The high value of Australia’s property market can pose challenges for lower to middle-income earners, but various trends such as rentvesting, co-ownership, and multi-generational living reflect Australians’ determination to achieve homeownership. Despite affordability constraints, the Australian property market remains resilient and continues to attract diverse buyers.

In conclusion, the upcoming financial year holds promise for the Australian real estate market, with changing dynamics offering opportunities for both buyers and sellers alike. As the market continues to evolve, it is essential for individuals to stay informed and navigate these changes to make informed decisions.