There is a growing body of evidence that property market conditions are strengthening. Against a backdrop of an ever-tightening rental market and increasing rents, there are signs of rising buyer activity and stronger prices.
Auction clearance rates are showing steady improvement in recent weeks and a number of research entities are recording price growth, in defiance of high inflation, rising interest rates and relentlessly negative media.
Domain’s price report for the December Quarter recorded house price growth in five of the eight capital cities, while SQM Research figures showed most capital cities in January recorded price growth for houses and all but one of them for apartments. In recent weeks, CoreLogic’s weekly value index has shown small increases.
Consumer sentiment towards real estate is improving, with an API Magazine survey indicating that 50% expect prices to rise this year and a further 20% expect them to stay the same.
Commentators like Stephen Koukoulas are noting the improvement in the market. In noting that house prices appear to have stopped falling and that “the worst is over for house prices”, Koukoulas said: “Who would have thought it?”
