The Australian housing market is ablaze with activity, fueled by the sharpest population increase in the nation’s history.

Last weekend’s auction clearance rate reached its highest level since February 2022, standing at an impressive 70%. Leading the charge was Sydney, boasting a remarkable 72.1% clearance rate, closely followed by Melbourne at 69.6%.

Source: CoreLogic

Prices have soared in tandem, with dwelling values in the five major capital cities experiencing a staggering 3.0% increase over the May quarter.

Sydney continues to demonstrate its resilience in the real estate market, posting an impressive 1.8% increase in property values over the past month.

This marks the highest monthly gain since September 2021. Since hitting a trough in January, home values have surged by 4.8%, equivalent to a substantial $48,390 rise in the median dwelling value.

This rapid appreciation in property values showcases that our property market found its floor and is currently on an upwards trajectory.

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Buyers are facing an uphill battle as supply dwindles and prices climb, making affordability a pressing concern for many.

CoreLogic’s Research Director, Tim Lawless, noted the positive trend is a symptom of persistently low levels of available housing supply running up against rising housing demand.

“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3% lower than they were at the same time last year and -24.4% below the previous five-year average for this time of year,” he said.

“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market. Amid increased competition, auction clearance rates have trended higher, holding at 70% or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”

Source: CoreLogic

In conclusion, the shortage of housing supply, rising prices, and population surge present ongoing challenges in the real estate market. Currently, we do not see the light at the end of the tunnel.

To navigate this landscape, it is crucial to focus on strategic planning. Despite the uncertainty, by staying proactive and informed, you can position yourself for success.

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