House prices rising dramatically across most of Australia

Property data analysis firm Prop Track has released its most recent market outlook and it says it shows that the demand for apartments and houses across Australia has remained high, despite interest rates remaining at their highest point in 12 years. Now. Prop Track says it expects across 2024 around 5% total price growth across the country, with prices already growing 2.7% between January and May this year already. Looking across the country in the financial year to date, so since July last year, we've seen 19% price growth in Perth, followed by 13% in Adelaide, 12% in Brisbane. Here in Sydney prices have risen about 6% and in Melbourne they've remained relatively stable with just under 1% price growth. Prop track says the impacts of the stage 3 tax cuts as well as a potential. Interest rate cut from the Reserve Bank next year will have impacts on the market, but they're starting to see the pace of growth potentially slowing. Here's what one of their analysts had to say. The market is expected to continue to have this mismatch between demand and supply, which sees prices rise. But we do expect that generally speaking, the rate of price growth is going to slow a little bit. Now, the most recent inflation data has come in at around 4%, which is stillwell above the Reserve Bank's target of between 2 and 3%. So some analysts are pointing that there's a possible risk of an interest rate increase at the August meeting, which means further pain for mortgage holders, but also for those looking to purchase, it'll make that harder to do so, which could take some of the heat out of the housing market.