Tuesday, October 3, 2023
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Australian house prices rise for fourth straight month in June

SYDNEY (Reuters) – Australian house prices rose for a fourth straight month in June, data showed on Monday, as a persistent tightening in the housing supply helped lift prices across the country.

National house prices rose 1.1% month-on-month in June after bottoming out in February and starting to rise steadily, according to property consultant CoreLogic.

Australian households are among the most indebted in the world, while housing affordability has recently declined. fell to an all-time low.

The Reserve Bank of Australia plans to raise its key interest rate by 25 basis points to 4. 35% on Tuesday to curb stubbornly high inflation, although a Reuters poll of economists suggested the decision would be a close call.

Dwelling prices rose in every state and territory capital except Hobart, Tasmania, according to CoreLogic. Sydney, the capital of New South Wales state and Australia’s largest city, led the way with a 1.7 per cent rise. Queensland’s capital, Brisbane, followed with a 1.3 per cent gain.

CoreLogic’s Tim Lawless says undersupply remains the main driver of price increases, adding that “the flow of new capital city listings is approaching June and below the previous five-year average 10 %.

While house prices continue to record “broad-based gains”, growth in most countries slows capital growth, according to CoreLogic.

“The moderation in the pace of capital gains likely reflects a change in sentiment as rate expectations have been revised higher,” Lawless said.

“Higher interest rates and lower sentiment are likely to affect the number of active homebuyers, helping to rebalance the disconnect between demand and supply. ”

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