Bi Monthly Market Update | Critically low housing supply keeps upward pressure on prices… - News

Critically low housing supply keeps upward pressure on prices…

Australia’s inflation rate has risen to 5.1% (a two-decade high) but it’s not surprising as inflation is rising internationally – Canada – 6.7%, NZ – 6.9%, UK – 7% and US – 8.5%.
As expected, the RBA raised the cash rate yesterday to 0.35% whilst forecasting inflation to 6% and unemployment down to 3.5% by end of this year. Both the US and UK are expected to further raise their rates later this week.
After a tumultuous couple of weeks on equity markets, the S&P ASX 200 was little changed on the Interest Rate news closing at 7,316.2. The Aussie dollar was up at $US .712.
Investors as a proportion of the whole mortgage market, remain below the decade average of 35% according to CoreLogic. In NSW it’s currently 38.2% compared to 23.5% in WA. Interestingly, only 38% of Australian households have a mortgage.
Perth home values rose 1.1% in April, as national house price growth fell to its lowest level in 19 months. That’s + 2.4% for Perth in the 3 months to April.
Perth remains the most affordable capital in Australia. In Sydney for example, the median is more than $1 million, compared to Perth at about $520,000.
With Australia’s population 600,000 less than pre-pandemic projections, migration is the only way Australia can fill the labour shortages every State is experiencing. Migration will further spur Perth’s housing prices.
Call me today to find out how these pressures impact the value of your home.

Authored by Jody Fewster

Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.

Bi Monthly Market Update | Critically low housing supply keeps upward pressure on prices…