Realestate.com.au Sarah Dowling says economists predict interest rates will fall under the leadership of the new RBA governor Michelle Bullock when she takes over from Mr Lowe in September.

Property prices are on the rise despite the avalanche of rate hikes since May 2023. According to CoreLogic’s data, all major capitals have recorded a month-on-month increase in total dwelling values, with Sydney leading the way at 1.8%.

The growing prices are driven by a “low supply of sales listings”, according to Nicola McDougall of PIPA. However, Domain’s data shows that properties in the nation’s capitals are taking an average of 20 to 30 days longer to sell, compared to same time last year.

According to HIA Chief Economist Tim Reardon, the construction sector will not feel the full impact of rate rises until 2024. This is due to the lag between the completion of projects currently in the pipeline versus the 41.8% year-on-year drop in sales of new homes.

Mr Reardon predicts new home construction commencements in 2024 “will reach its lowest volume since 2012”.

The collapse of construction company Toplace, affecting over 500 creditors and 20,000 homeowners, is set to become “one of the largest property administrations in Australia”, according to Suelen McCallum of dVT Group, Toplace’s appointed administrators.

Download and read the full Market Essentials – August 2023 Report.