A drop in iron ore and lithium prices has so far had little impact on Perth and regional Western Australia which continue to be the strongest markets in Australia. Following this Queensland and South Australia, and their capital cities, are also showing strong growth. Meanwhile in Sydney and Melbourne, we saw a slight reduction in prices over the month, both declining by 0.1 per cent.
The outlook for prices will start to become more interesting as we head into spring. There are a lot of properties coming to market, the highest level recorded within Ray White for this time of year, based on listing authorities (the point at which a seller signs with a Ray White agent but before the property is advertised).
While a lot of stock coming to market might suggest price growth softening, we have also seen a pick up in first home buyer, owner occupier and investor lending (as measured by the Australian Bureau of Statistics). Loan Market, the largest mortgage broker community in Australia, saw a 23 per cent spike in pre-approvals for new loans in August. Average active bidding at Ray White auctions also remains solid. While interest rates remain high, it may be the growing potential for a cut is driving activity amongst buyers as we head into spring.
Article by
Nerida Conisbee
Ray White Group
Chief economist
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