RBA Rate Cut Sparks Rebound in Aussie Housing Market

0

Recent data from CoreLogic shows a notable upswing in dwelling values, particularly in Sydney and Melbourne. At a broader level, the aggregate 5-city dwelling values index rose by 0.3% over the past 28 days, a significant improvement from the 0.5% decline observed at the close of 2024.

The buoyancy in property prices is mirrored in the auction markets, where clearance rates are showing robust improvement. Vendors are eager to capitalize on the growing demand and increasing prices, resulting in a rise in property listings, as reported by SQM. Nationwide property listings climbed by 2.3% in February 2025, reaching a total of 249,325 properties, reflecting a 4.1% increase compared to February 2024.

In a breakdown of city-specific data, Sydney led with an 11.6% rise in listings, reaching 33,241 properties, a 10.5% increase from the previous year. Melbourne followed with a 5.5% rise, totaling 39,956 listings and marking a 4.8% rise annually. While Brisbane, Adelaide, and Hobart recorded monthly gains of 1.1%, 4.8%, and 1.1%, respectively, it is noteworthy that Adelaide experienced a 5% annual decline.

The outlook suggests that most economists predict the RBA may further reduce interest rates three more times within the year, potentially bringing the official cash rate down to 3.35%. This economic climate of lower financing costs, increased borrowing capabilities, and pent-up demand could trigger another cycle of growth in the housing market.

Published:Wednesday, 5th Mar 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

Sydney's Housing Market Reaches Record $2 Million 17 Apr 2025: Paige Estritori In a landmark moment for Sydney's real estate market, the city’s median asking price for houses has surpassed the $2 million mark, hitting $2,012,000 as of 15 April, according to SQM Research. This figure includes Greater Sydney regions such as the Blue Mountains and Central Coast. The development was confirmed by SQM's managing director, Louis Christopher. - read more

Institutional Investors Maintain Course Amid Escalating Geopolitical Risks 17 Apr 2025: Paige Estritori Institutional investors across the globe are largely standing firm despite acknowledging the rising geopolitical risks impacting their portfolios. Recent research by investment consultancy firm Bfinance, involving over 160 institutional investors worldwide, reveals that most entities have not adjusted their strategic investments amidst the current economic turbulence driven by trade conflicts. - read more

Acadian Launches Diversified Emerging Markets Equity Fund for Australian Investors 16 Apr 2025: Paige Estritori Acadian Asset Management, renowned for its quantitative investment strategies, has introduced a new emerging markets equity fund targeting Australian wholesale investors. This fund is meticulously crafted to balance risk without compromising on long-term returns. - read more

Bank of Queensland Warns of Rising Bad Loans Amid Economic Uncertainty 16 Apr 2025: Paige Estritori The Bank of Queensland, a prominent mid-tier lender, has issued a cautionary note about an anticipated rise in bad loans due to ongoing economic uncertainty. Despite this warning, the bank's shares experienced an unexpected surge. - read more

ASIC to Name Financial Licensees in New Breach Transparency Initiative 14 Apr 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has proposed a new regulatory framework aimed at increasing transparency in the financial industry by identifying financial planning licensees who report breaches. Revealed in a consultation paper, CP 383, this proposal would see ASIC start publishing Reportable Situations (RS) and Internal Dispute Resolution (IDR) data at both firm and industry levels, including the names and licence numbers of the offending companies. - read more