Economy & Finance Update
April 2024
It’s been a busy start to autumn, with property prices reaching a new record high.
Despite last year’s interest rate rises and the general cost-of-living crisis, property prices continue to creep higher in many markets. CoreLogic data shows prices rose 0.6% in March.
In Sydney, the median property value is now $1.07 million. That’s up 8 per cent compared to a year ago. Meanwhile, Perth, Adelaide and Brisbane have all experienced double-digit growth in property prices.
Listings volumes have surged, particularly in Sydney and Melbourne, giving buyers more choice. So, if you’re thinking about buying, now could be a great time to dive in. Chat to us about getting your finance pre-approved.
Interest rate news
The RBA decided to keep the cash rate on hold at 4.35 per cent at its latest meeting on March 19.
The RBA said inflation was continuing to moderate, but still remained high. The monthly CPI indicator was steady at 3.4 per cent over the year to January.
“The central forecasts are for inflation to return to the target range of 2–3 per cent in 2025, and to the midpoint in 2026,” the RBA said.
Many economists now expect the RBA’s next move to be a cash rate cut – likely a 25-basis point easing in the cash rate at the RBA’s September 23-24 board meeting.
Stay tuned for the next RBA cash rate decision, due 7 May.
Home value movements
In exciting news for homeowners and investors, property prices were up 0.6% across the capital cities in March, marking the 14th consecutive month of growth.
Every capital city except Darwin (-0.2%) saw property prices increase over the month.
“At one end of the scale we have Perth’s housing market where values were up 1.9% over the month, followed by Adelaide and Brisbane with 1.4% and 1.1% growth,” CoreLogic’s research director Tim Lawless said.
“The remaining capitals are showing much lower rates of change, although Melbourne is the only capital city to record a negative quarterly movement, down -0.2% over the first three months of the year.”
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 900 | 59% | 1174 | 0% |
| NSW | 1205 | 61% | 1528 | ▲ 0.3% |
| ACT | 89 | 56% | 98 | ▲ 0.5% |
| QLD | 232 | 50% | 1204 | ▲ 1.1% |
| WA | 6 | 67% | 697 | ▲ 1.9% |
| NT | 6 | 33% | 20 | ▼ – 0.2% |
| TAS | 1 | — | 100 | ▲ 0.3% |
| SA | 133 | 69% | 288 | ▲ 1.4% |
* Monthly Home Values figures as of 31 March 2024
* Australian auction results, clearance rates and recent sales for the week ending 7 April 2024
* The clearance rate is preliminary and current as of 11:30 pm, 10 April 2024
Whether you’re planning an exciting property purchase, or you’re looking to refinance your loan, we’re here. Get in touch today to talk through your finance needs.
