Weekend Edition: More on Australia’s House Price Quandary

NAB Morning Call

Friday 6th July 2024

Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.

In June, according to PropTrack, Australia’s home prices hit new highs, rising for the 18th consecutive month. But, as Eleanor Creagh, senior economist at PropTrack explains, the growth is far from even. There are some cities where prices are falling. So, what are the factors driving prices up? And how can it be that prices have risen so much in the last year even though the RBA is pursuing such a hefty tightening cycle, pushing interest rates higher.

Eleanor takes Phil through the latest PropTrack data and looks at the inevitable question, where to from here? If buyers have taken a longer-term view, buying when interest rates have peaked, does that mean we are less likely to see a spike in prices when the rates start to fall? Or not? Logic and house prices can be strange bedfellows.

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