Australian Home Prices Surge Amidst Demand and Stock Shortage
In August, Australian home prices increased due to heightened buyer demand and limited available stock. The 0.7% rise, marking the strongest gain since May 2024, was influenced by improved borrowing capabilities and real wage growth. This continued trend corresponds with the central bank’s interest rate cuts.
In August, Australian home prices experienced a noticeable escalation, attributed to a surge in buyer interest and a scarcity of advertised properties, as reported by property consultant Cotality on Monday.
Data revealed prices ascended by 0.7% to reach a median value of A$848,858, pushing ahead of July's 0.5% increase. This marks the most robust monthly growth since May 2024, with cities like Brisbane witnessing a 1.2% jump, while Sydney and Melbourne saw increases of 0.8% and 0.3% respectively. Notably, Hobart recorded a slight decline of 0.2%.
The enhanced buyer activity is linked to expanded borrowing capabilities, real wage growth, and increased confidence amid constrained stock levels, according to Cotality. The gradual national price rise since the Reserve Bank of Australia commenced rate cuts signals ongoing market momentum.
(With inputs from agencies.)
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