House prices rising dramatically across most of Australia

New data out this morning shows house prices have risen dramatically across most of Australia with a 5% rise expected by the end of the year.

Transcript

00:00The property data analysis firm PropTrack has released its most recent market outlook

00:07and it says it shows that the demand for apartments and houses across Australia has remained high

00:13despite interest rates remaining at their highest point in 12 years.

00:18Now PropTrack says it expects across 2024 around 5% total price growth across the country

00:26with prices already growing 2.7% between January and May this year already.

00:32Looking across the country, in the financial year to date, so since July last year,

00:38we've seen 19% price growth in Perth, followed by 13% in Adelaide, 12% in Brisbane.

00:47Here in Sydney prices have risen about 6% and in Melbourne they've remained relatively stable

00:54with just under 1% price growth.

00:57PropTrack says the impacts of the stage 3 tax cuts as well as a potential interest rate cut

01:04from the Reserve Bank next year will have impacts on the market

01:09but they're starting to see the pace of growth potentially slowing.

01:13Here's what one of their analysts had to say.

01:16The market is expected to continue to have this mismatch between demand and supply

01:22which sees prices rise but we do expect that generally speaking

01:27the rate of price growth is going to slow a little bit.

01:30Now the most recent inflation data has come in at around 4%

01:35which is still well above the Reserve Bank's target of between 2% and 3%.

01:40So some analysts are pointing that there's a possible risk of an interest rate increase

01:45at the August meeting which means further pain for mortgage holders

01:50but also for those looking to purchase it'll make that harder to do so

01:54which could take some of the heat out of the housing market.