Property Price Hikes Continue
Property Price Hikes Continue with a 2% May Increase for Brisbane
There’s no end in sight for the housing market boom in Brisbane, with CoreLogic’s research director, Tim Lawless reporting that Brisbane saw a further 2% increase in house prices in May. This was in line with the national average of 2.2% which was a significant rise from April’s 1.8%, but lower than the 32-year high in March of 2.8%.
Mr Lawless believes the RBA’s recent decision to leave the cash rate at the record low of 0.1% is just one contributing factor in the consistent price rises.
“The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn has created persistently strong demand for housing. At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices,” he said.
However, Mr Lawless has indicated that there are signs the housing market has moved through a peak rate of growth and is likely to slow down even if prices continue to rise.
“Housing values over the past six months have been rising at an unsustainable rate and are now succumbing to a gradual slowdown in demand,” he said.
Mr Lawless stated that prices would continue to rise though due to a further tightening of the labour market post JobKeeper helping to keep consumer sentiment high.
“We are expecting housing values will continue to rise throughout 2021 and into 2022, albeit at a gradually slower pace. Demand should be supported by the expectation that mortgage rates will remain at their record lows for an extended period of time, as well as ongoing high levels of consumer confidence as the economy expands at a faster than average pace.”
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