CoreLogic data finds home values increased 8.1% in 2023

ABC NEWS (Australia)

Home ownership is now even more out of reach for many Australians with double digit price surges in several states for 2023. Experts are predicting interest rate relief this year but also more price pain for first-home buyers.

Transcript

00:00 The property market boomed last year, even though interest rates were at a 13 year high.

00:07 I've been in real estate nearly 40 years and I haven't seen anything like this before.

00:13 It's quite unusual.

00:14 The real estate agent wants $1.4 million for this two bedroom flat, and it might just get

00:21 that thanks to growing interest from cashed up investors.

00:25 There's a shortage of properties on the market and therefore because of the high demand the

00:30 prices have been rising.

00:32 The numbers for 2023 are now in.

00:36 And the rises for the year ended at more than 8% across Australia.

00:41 That has pushed up the price of the average home to around $750,000.

00:46 Perth, Brisbane and Sydney jumped the most, while Adelaide, Melbourne and Canberra rose

00:53 as well.

00:55 Hobart and Darwin were the only capitals where prices dropped.

00:59 I would imagine 2024 is going to start with a slowdown at the high end of the market in

01:05 particular.

01:06 But this trend might be short lived.

01:09 Once we get a stronger signal that a cash rate cut is on the horizon or the cash rate

01:14 actually goes down, that that would start to stimulate more demand.

01:17 Our base case is no more rate rises in Australia and we expect the first rate cut to start

01:23 in September.

01:25 The average home now costs more than 8 times the standard annual income.

01:30 So it's a pretty difficult time for people trying to get into the housing market currently.

01:34 Saving up for a deposit is also difficult when rents keep going up.

01:39 Nationally they soared by more than 8% in 2023, which was adding to even bigger increases

01:46 in the previous two years.

01:49 Apartment rents have been going up the most.

01:51 Unless there's a substantial change in household composition or a dramatic drop off in overseas

01:57 migration you would expect that rental demand to stay very high.

02:02 Making this year likely another tough one for low income households and a good one for

02:08 cashed up investors.

02:10 [BLANK_AUDIO]

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