Alex Mitchell
AUSTRALIAN home values have continued to soar, and an expected post-election rate cut is likely to fuel further growth.
Defying economic uncertainty caused by US President Donald Trump’s trade tariffs, the national median dwelling price rose 0.3 per cent in April to $825,000 according to Cotality, formerly known as CoreLogic.
Dwellings in Darwin saw the biggest spike, climbing 1.1 per cent to $526,000.
Cotality’s research director Tim Lawless said the Reserve Bank of Australia’s decision to cut interest rates by 0.25 in February might have juiced the market.
But he added the pace of price growth had eased compared with the previous month, with auction clearance rates also slumping.
“The rate cut in February supported an upwards inflection in housing market conditions, but the positive influence from lower rates seems to be losing some potency,” he said.
“Household confidence slipped in April, with the US ‘Liberation Day’ tariff announcements and the upcoming federal election causing uncertainty … this may be causing some buyers and sellers to delay their decisions.”
Another rate cut is expected in May in the aftermath of the Federal Election, which should fuel a “modest” rise in dwelling values throughout the rest of the year.
Last week’s underlying inflation figures, which saw the trimmed mean fall to 2.9 per cent in the year to March, has paved the way for another round of RBA intervention.
Economists at CBA, ANZ and Westpac expect a 25 basis point rate cut, which would bring the cash interest rate down to 3.85 per cent.
The nationwide pace of gains in the year to April slowed to 3.2 per cent, which is the slowest rate since August 2023.
“Given the softer trajectory of growth through last year, it’s likely the annual pace of gains will continue to soften over the coming months, despite the positive inflection in values since February,” Mr Lawless said.
Regional house prices grew at a quicker clip than the capitals in April, at 0.6 per cent compared with 0.2.
A similar report from PropTrack found house prices in Sydney grew 0.1 per cent in April to hit a record high median mark of $1.12 million.
Since Covid, home prices in Sydney have sky-rocketed a whopping 40 per cent.
