As we enter the last month of the financial year, there’s been a focus on the state of the property market. The Federal Election is over; there’s a new government in town, so what’s next for the housing market? Are we still in a boom or bust, or has the market finally returned to ‘normal’?
Data from PropTrack Home Price Index found price growth either flat-lined or fell across the country over the last month. House prices in most areas fell for the first time since 2020; however, prices were down for the first time in three years in the ACT.
Economists predict that the property market will continue to soften. AMP Capital’s chief economist says that Australia should expect a 10 to 15 per cent drop in house prices in some areas over the next 18 months. However, despite a weakening market, agents report that auction clearance rates remain steady, there’s adequate stock available, and for the most part, a buyer for every seller. With predictions that interest rates will increase monthly until the end of 2022, sellers may soon need to adjust their expectations.
The new Labour Government will endeavour to tackle affordable housing, continue to fund the Coalition’s Home Guarantee Scheme in the new financial year, and introduce a raft of policy measures designed to address the property market’s most significant issues.
Download and read the full Market Essentials – June 2022 Report.