As usual, home prices are a question of supply and demand.
At this stage, probably easier to capture the main trends regarding supply. Supply is clearly decreasing : - for rental properties* (investors selling) - for existing properties for sale** (owner occupiers are reluctant to sell and so more than offset the fact that investors are selling), - for new homes***due in particular to large cost increase (+ 13 % yoy according to ABS, due to labor and material).
Regarding demand, it is more difficult to identify clear trends. Main one, according to Corelogic : stronger demand for high end properties. We will probably need to wait for the next figures for monthly mortgage growth to see if there is a stronger demand from first home buyers, as there are signs that demand is also improving there.
* in a study published this week, Corelogic indicated that the "count of rental listings on the market decreased to 96,000 over the past 4 weeks, down from previous 5 year average for this time of the year of 150,000". ** large decrease yoy for auction volumes, *** in its latest State of the Land report, Urban Development Institute indicated that "greenfield lot sales almost halved" and "settled apartment sales fell to their lowest level since the GFC".
