Over the month, Sydney units were the only market where we saw a slight decline in prices. Year-on-year we are seeing prices increase in every suburb of the country.
The growth in pricing continues despite interest rates remaining high. Inflation data released last week suggests interest rates are likely to remain higher for longer. Whereas on the morning of April 24, markets were pricing in a cut for October 2024, by April 25, this timing had changed to April 2025. Looking at data at this exact point in time suggests no cut in 2024. We will have a better idea as to the impact on pricing of this change in the interest outlook in May.
Regardless, many of the drivers of house price growth continue. Population growth is moderating, however, we built around 50,000 too few homes last year and it will take some time to catch up. Construction costs remain elevated and we are off to a poor start to achieving what was set out in the Housing Accord of 1.2 million homes to be built over five years. While it remains cheaper to buy an established home than build a new one, it means that price growth will continue.
