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Bi Monthly Market Update | Critically low housing supply keeps upward pressure on prices…

By Jody Fewster

Critically low housing supply keeps upward pressure on prices…

  • Australia’s inflation rate has risen to 5.1% (a two-decade high) but it’s not surprising as inflation is rising internationally – Canada – 6.7%, NZ – 6.9%, UK – 7% and US – 8.5%.
  • As expected, the RBA raised the cash rate yesterday to 0.35% whilst forecasting inflation to 6% and unemployment down to 3.5% by end of this year. Both the US and UK are expected to further raise their rates later this week.
  • After a tumultuous couple of weeks on equity markets, the S&P ASX 200 was little changed on the Interest Rate news closing at 7,316.2. The Aussie dollar was up at $US .712.
  • Investors as a proportion of the whole mortgage market, remain below the decade average of 35% according to CoreLogic. In NSW it’s currently 38.2% compared to 23.5% in WA. Interestingly, only 38% of Australian households have a mortgage.
  • Perth home values rose 1.1% in April, as national house price growth fell to its lowest level in 19 months. That’s + 2.4% for Perth in the 3 months to April.
  • Perth remains the most affordable capital in Australia. In Sydney for example, the median is more than $1 million, compared to Perth at about $520,000.
  • With Australia’s population 600,000 less than pre-pandemic projections, migration is the only way Australia can fill the labour shortages every State is experiencing. Migration will further spur Perth’s housing prices.
  • Call me today to find out how these pressures impact the value of your home.
Authored by Jody Fewster
Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.
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