Economy & Finance Update
November 2024
The busy spring selling season has seen many aspiring homeowners out and about looking for the perfect property to snap up.
Property prices continue to rise (up 0.3% nationally in October), but recently we’ve seen price growth slowing and the market cooling.
If you’re planning to be in a new home before the new year, make sure you get your finance pre-approved early. That way, you’ll be able to dive in when you find the right property for your needs.
Interest rate news
At its latest meeting, the Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35 per cent.
While the latest inflation data was promising, the RBA said underlying inflation remained too high.
Headline inflation was 2.8 per cent over the year to the September quarter, down from 3.8 per cent over the year to the June quarter. It was the first time annual CPI has been under the 3% upper limit of the RBA’s target range since the March quarter of 2021.
While the inflation news was welcomed by homeowners, the RBA said part of the decline reflected temporary cost of living relief.
“Abstracting from these effects, underlying inflation (as represented by the trimmed mean) was 3.5 per cent over the year to the September quarter,” the RBA said in a post-meeting statement.
“This was as forecast, but is still some way from the 2.5 per cent midpoint of the inflation target.”
The RBA doesn’t expect inflation to return sustainably to the midpoint of the target until 2026.
The last RBA cash rate decision for 2024 will be announced on 10 December. Economists anticipate a cash rate cut is likely in the first half of 2025.
To find out how your current home loan compares to others, get in touch today.
Home value movements
National dwelling values increased 0.3% in October – the 21st month of growth since February 2023, according to CoreLogic.
Perth topped the leaderboard, with housing prices increasing 1.4% over the month. On the other hand, values dropped in Darwin (-1.0%), Canberra (-0.3%), Melbourne (-0.2%) and for the first time since January 2023, in Sydney (-0.1%).
Meanwhile, there’s been a rise in advertised stock levels, creating weaker conditions in some markets, as buyers have more choice and less urgency to purchase.
“Total listings are now 13.2% above the previous five-year average in Sydney and 13% higher in Melbourne,” CoreLogic research director Tim Lawless said.
“Despite the rise in listings across the mid-sized capitals, Perth, Adelaide, and Brisbane are still seeing advertised stock levels more than -20% below the five-year average for this time of the year.
“These markets remain well and truly in favour of sellers, although the balance is starting to gradually improve.”
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 519 | 56% | 1480 | ▼ – 0.2% |
| NSW | 1426 | 50% | 1856 | ▼ – 0.1% |
| ACT | 115 | 51% | 132 | ▼ – 0.3% |
| QLD | 327 | 36% | 1252 | ▲ 0.7% |
| WA | 12 | 25% | 704 | ▲ 1.4% |
| NT | 6 | 83% | 32 | ▼ – 0.1% |
| TAS | 0 | -% | 177 | ▲ 0.8% |
| SA | 202 | 63% | 365 | ▲ 1.1% |
* Monthly Home Values figures as of 31 October 2024
* Australian auction results, clearance rates and recent sales for the week ending 3 November 2024
* The clearance rate is preliminary and current as of 3:20 pm, 6 November 2024
With interest rates on hold and prices coming down in several capitals, now could be a good time to start planning a property purchase.
Talk to us about pre-approval and let’s make it happen.
