House prices nationwide have fallen for a second consecutive month. However, with an interest rate cut on the horizon – potentially as soon as this month – economists say the dip in prices is likely to be short-lived.
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00:00Brisbane is bucking the trend.
00:07It's the only Australian capital city to see a lift in home prices in January,
00:13up over 10 per cent from last year and a whopping 78 per cent since March 2020.
00:20We have continued to see above average population growth into south east Queensland,
00:25strong demand fuelled by investor activity, of course the Olympic Games as well and infrastructure investment.
00:31Nationally, home prices fell by 0.08 per cent in January, but are nearly 4 per cent higher for the year.
00:39Melbourne experienced a sharp drop in the past year.
00:43The median dwelling price there is now $779,000.
00:48Home prices in other states and territories have been steady,
00:52while Perth, Adelaide and Brisbane have seen growth over the past 12 months.
00:57Rising house prices from about 2022 through 2024 were a major contributor to the cost of living crisis,
01:07as were increases in rents.
01:10Economists are predicting a modest interest rate cut this month,
01:14leading to a small upswing in house prices over the next six months.
01:19Off the back of big gains since the pandemic, housing affordability is likely to remain a problem.
01:26If you look at the ratio of average house prices to median household income,
01:32that ratio has gone from about three times 40 years ago to now up around eight times.
01:38So while some of the heat has come out of the property market in recent months,
01:42home ownership is likely to remain out of reach for many.