In a strong sign for the traditional spring selling season, data from Raine & Horne shows that appraisals rose by 18.69% nationally month-on-month in July, indicating a robust market.

 Simultaneously, many Australians have already initiated property sales, with listings jumping 23.49% nationally month-on-month, according to Raine & Horne data.

“Often in winter, property markets take a breather, but this year, many homeowners are aware their properties have enjoyed a value surge over the last 12 months and are eager to make a move,” commented Angus Raine, Executive Chairman of Raine & Horne.

 CoreLogic reported that national home values rose by 0.5% in July[i], marking the 18th consecutive monthly increase. Since November last year, values have consistently reached new record highs, with a cumulative increase of 13.5%.

 “The almost 19% spike in appraisals is very pleasing and serves as a barometer for the level of sales strength two or three months down the track,” Angus added. “Don’t forget that auction clearance rates remain at healthy levels, with Adelaide the best at almost 79%, and Melbourne and Sydney around 60%.”

 Meanwhile, Angus is buoyed by the softer-than-expected June quarter inflation and retail sales data for Australia[ii]. Headline inflation rose by 1% over the quarter and 3.8% over the year, matching economists’ expectations and the RBA’s forecasts from May.

Angus added, “However, we must remember that not every property transaction is impacted by interest rates. Many Australians buy and sell properties simply because they have saved enough for a deposit and want to get off the rental treadmill, have growing families, are changing jobs, are empty nesters who no longer need larger houses, or simply desire a lifestyle change. 

 “None of these decisions are influenced by interest rates.”

 That said, 1 in 4 (26%) economists expect to see the first cash rate cut by the Reserve Bank in time for Christmas. Graham Cooke, head of consumer research at Finder, noted that the consensus is that the latest inflation figures aren’t high enough to warrant a rate hike this week.

“This doesn’t mean we will see a rate cut in August, but there is a chance we’ll get one by Christmas,” Graham said.For an obligation-free appraisal of the value of your home or investment property before spring, contact your local Raine & Horne office today.

 
[i] https://www.corelogic.com.au/news-research/news/2024/three-capital-cities-record-a-fall-in-home-values-as-momentum-leaves-the-cycle
[ii] https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release