After the initial adjustment earlier this year, the overall performance of the Australian real estate market was relatively stable. The cut in interest rates, the reduction in uncertainty surrounding housing-related tax policies after federal elections, and the relaxation of regulators’ over-tightening loan guidelines have combined to produce significant improvements.
House prices in the two key markets of Sydney and Melbourne are now clearly stabilizing. These two markets are the center of recent price corrections, with prices rising slightly over the past three months, and a range of indicators showing rising real estate demand. Victoria’s three recent Real estate prices rose slightly in the month, the situation improved significantly, and the housing-related index rose sharply. Compared to Sydney, the price of the Melbourne real estate market has arrived late, but the cumulative decline in the market is small. Prices have risen by 1.4% in the past three months, but are still 10% below the peak.
The Victorian Consumer Housing Confidence Index has risen sharply in the past three months, mainly due to a sharp increase in price expectations and a further increase in the “purchase timing” to above average.
