Home prices hit record high after rate cut boosts buyer sentiment
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The news: Australia's property prices hit a record high in March after the first interest rate cut in more than four years boosted buyer sentiment, CoreLogic data shows.
Rental values are also at record highs, according to the data.
The numbers: National home values rose 0.4% over the month to a new peak of $820,331.
Prices increased in every capital city except Hobart (-0.4%), with Sydney up 0.3% and Melbourne 0.5%.
Regional areas, particularly in Western Australia and Queensland, outperformed, with WA’s mid west up 25.4% and Townsville 23.5% higher over the year.
Rents also reached a record high, rising 0.6% in March, although annual growth slowed to 3.8%—the slowest since March 2021.
What they said: CoreLogic said the February rate cut likely drove the turnaround, though affordability constraints remain.
“It’s hard to see housing markets moving into a material growth trend” without substantial improvement in home loan serviceability, it said.
The results come as the Reserve Bank is widely expected to hold the cash rate at 4.1% at its meeting today.
The source: CoreLogic release
