{"id":5215,"date":"2023-03-02T09:00:41","date_gmt":"2023-03-01T23:00:41","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5215"},"modified":"2023-03-02T09:00:41","modified_gmt":"2023-03-01T23:00:41","slug":"the-latest-twist-in-the-tale-of-national-property-prices-explained","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/the-latest-twist-in-the-tale-of-national-property-prices-explained\/","title":{"rendered":"The latest twist in the tale of national property prices: explained"},"content":{"rendered":"
Despite all the media doom and gloom predicting that the Australian housing market would tank in 2023, national property prices actually rose ever-so-slightly in February.<\/p>\n So what the heck is going on?<\/p>\n You may have heard it\u2019s been a bit of a buyer\u2019s market in recent times. Over the past 12 months,\u00a0property prices were down 7.2%<\/a>, the biggest annual drop since May 2019.<\/p>\n With rising interest rates, buyer demand slowed. This saw properties sitting on the market for longer.<\/p>\n And to entice sales,\u00a0vendor discounting rose to -4.3% in January 2023<\/a>\u00a0from -2.9% in November 2021.<\/p>\n However, recent data shows things may be starting to turn.<\/p>\n A PropTrack\u00a0analysis<\/a>\u00a0shows that Australian property prices actually rose by 0.18% in February 2023.<\/p>\n And here\u2019s why \u2026<\/p>\n If you\u2019ve been house hunting recently you may have noticed it is slim pickings. In fact, as of December 2022,\u00a0new listings were 20.4% lower year-on-year<\/a>.<\/p>\n Lower listing volumes for most states has created increased buyer competition, which has helped drive prices up slightly.<\/p>\n Now, this may just be a blip \u2013 listing volumes can experience seasonal fluctuations and if supply increases again prices may drop back down.<\/p>\n But it just goes to show how hard the market is to predict. And those who are holding out on buying until the market drops further might want to start preparing their finances sooner rather than later.<\/p>\n Why were national property prices expected to drop in 2023? And why might they still fall?<\/p>\n Well, successive rate rises have seen the RBA\u2019s official cash rate hit 3.35%, up from 0.10% in May 2022.<\/p>\nThe property market has had more plot twists than a daytime soap opera in recent years. So getting the skinny on current trends is helpful when you\u2019re planning to buy. Here\u2019s the lowdown on the latest surprising bit of data.<\/strong><\/p>\n
Property price trends<\/h3>\n
Impact of housing supply<\/h3>\n
Impact of interest rates<\/h3>\n