Australian dwelling values rose 1.9% in the month of June 2021 taking housing values 13.5% higher over the year. The highest annual growth since April 2004. Regional Queensland dwellings rose 1.8% in the month of June 2021. Regional Queensland change in dwelling values (12 months to June 2021) rose by 17.1%.
Impressive figures! But there are some signs of growth slowing down in the housing market. This deceleration in growth can be seen in both the capital cities and regional markets. This can probably be attributed to worsening affordability as housing values rise at a substantially faster pace than incomes. This is becoming a substantial barrier to entry for many Australians.
It is estimated that there were approximately 582,900 houses and unit’s transactions nationally over the financial year. That is the highest number of sales annually since February 2004. Sales are still outpacing new listings with stock levels at approximately below 25% of the 5-year average.
However, the housing market has clearly lost some growth momentum. The high rates of home price appreciation are proving to be unsustainable from both an affordability perspective and amidst renewed headwinds from outbreaks and spot lockdowns.
Through June several of the major banks have forecast cash rate increases earlier than inspected by the Reserve Bank. More expensive credit, or credit that is harder to obtain could further shift the housing market dynamics back to normal levels.
Source - www.corelogic.com.au