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Buyer numbers surge as property market values hit new peak

July 4, 2024

Despite the chilly conditions, buyers are turning out in greater numbers, with a 16% increase in groups attending open for inspections, according to the latest June data from Raine & Horne.

Angus Raine, Executive Chairman of Raine & Horne, stated that higher interest rates, and even the threat of further rate hikes, are failing to dampen buyer demand.

At the same time, CoreLogic reports that Australian dwelling values increased by 0.7% in June, bringing the growth to 8.0% for the financial year 2023-24. This equates to a $59,000 monthly increase in the median dwelling value, now standing at $794,000.

Strong market conditions have persisted in mid-sized capitals, particularly Perth, where values surged by 2.0% in June, marking a 23.6% increase over the year. Adelaide's values rose by 1.7% in June, reaching a 15.4% increase for the financial year with a median value of $767,974. Brisbane saw a 1.2% rise in June, culminating in a 15.8% annual increase, with a median value of $859,240. Sydney's dwelling values increased by 6.3% to $1,170,152.

Regional markets have shown a similar trend to the capitals, with Regional WA leading the pace of capital gains with a 1.5% rise in June and 16.6% increase over the financial year. Regional SA and Regional Qld have also recorded strong growth conditions while regional Victorian dwelling values fell by half a percent over the year and regional Tasmania recorded a mild 0.7% rise.

Despite strong demand and rising property values, Raine & Horne reports that fewer vendors are bringing their properties to market compared to the middle of winter 2023. In June, listings fell by 9.5% month-on-month compared to May. However, there is plenty of hope for spring, with a 6.6% increase in appraisals compared to June 2023.

Angus advised, "With prices rising and buyer demand remaining strong, now is the perfect time for property owners to consider selling, especially with the changes to Home Guarantee Scheme (HGS).”

Starting from 1 July 2024, the HGS will offer more support to eligible home buyers, including first-time buyers, single parents, and people in regional areas, to purchase a home sooner.

“For the 2024-25 financial year, 50,000 new places will be available across three Scheme guarantees, leading to an increase in the number of buyers in the market. This will place more pressure on prices and further increase demand,” Angus said. 

Rental growth is easing but remains well above average, with CoreLogic’s national rental index showing a monthly rise of 0.4% and an annual rise of 8.2%. Despite the steadying rental growth in some markets, rents continue to increase at an above-average pace across most regions and housing types. Nationally, the decade average rate of annual rental growth prior to the pandemic was just 2.0%. Gross rental yields have stabilised, holding at around 3.5% across the capitals since early 2023, with regional yields around 4.4%. 

For a free and no-obligation appraisal of your property, reach out to your local Raine & Horne agent today to discover the true value of your home.