RAY WHITE NOW THIS MONTH
After experiencing the most rapid rise in house prices ever recorded , interest rates have now calmed the market . Nationally , the median house price in Australia peaked in April at $ 732,500 and has come back to $ 729,000 , a decline of 0.5 per cent . Not exactly a crashing market but clearly one in a different cycle , where most markets are now seeing declines in prices .
While prices are slowing , we ’ re not seeing similar conditions in rental markets . Australian advertised rents for houses are up 27 per cent since the start of the pandemic and aren ’ t expected to slow any time soon . As yet , these higher advertised rents aren ’ t showing up among existing tenants and as a result it ’ s not a component of higher inflation . This , however , is expected to show up later this year and will be another driver of high inflation . High rental growth is a problem for renters but once it feeds into inflation and hence interest rates , it will also be problematic for mortgage holders . Ideally , the peak of inflation will come in by the end of the year at which time we ’ ll start to see a slow down in those rate rises .
This month in Ray White Now , we take a look at the state of each capital cities ’ housing markets . While Sydney is leading the way for price falls with the median down 6.7 per cent since the peak in December , Adelaide ’ s momentum continues for now and the city is yet to hit its post pandemic peak . Meanwhile , a construction crisis is coming in at a difficult time for the rental market . Rents are rising rapidly but the supply of new housing will be constrained by rising construction costs and a flow on impact to the viability of new projects .
With the 2021 Census of Population and Housing now out , we investigate our most international suburbs . While North Americans and Europeans show a fondness for our beaches , the suburbs that have the highest proportion of overseas born by country are far more mixed . Finally , with commercial property transactions hitting a record high in the 2021 / 22 financial year , we provide a state by state wrap for this sector .
We hope you enjoy reading our latest Ray White Now .
Nerida Conisbee Chief Economist Ray White Group
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