House prices continue to rise in all capital cities except Hobart. CoreLogic’s national home value index rose by 0.6% in February, the strongest monthly gain since October.
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TVTranscript
00:00 We're living in tough economic times at the moment with inflation, interest rates,
00:07 cost of living pressures, but despite all that, last month the latest data shows house
00:13 prices actually went up a little bit.
00:18 So why is that?
00:20 Well economists believe it might be because prospective buyers are feeling a little bit
00:24 optimistic about the prospect of interest rate cuts later this year.
00:29 As well as that, the current supply of houses and apartments isn't enough to meet demand.
00:36 The CoreLogic data shows nationally housing values went up by 0.6% in February, and all
00:42 capital cities saw a rise except Hobart which fell by 0.3%.
00:46 Perth saw the greatest increase of 1.8%, Sydney was up 0.5%, and here in Melbourne house and
00:53 unit values went up by 0.1% last month.
00:58 It looks like the housing market has actually avoided a cyclical downswing.
01:02 That's where it looked like the market was going at the end of last year.
01:05 But off the back of a bit of an uptick in consumer sentiment, the prospect of a rate
01:10 reduction and continued high levels of migration, it looks like the market has avoided that
01:16 and we could continue to see a bit of an uptick in the following months.
01:20 But there are competing economic forces at play, so that uptick isn't guaranteed.
01:26 With rising unemployment, higher interest rates and lower household savings making it
01:30 tougher for people to buy a house.
01:33 So the year ahead in the property market is anything but certain.
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