Momentum in Australia’s housing market has waned following the Reserve Bank of Australia’s (RBA) 0.25% interest rate cut in February.
Last weekend’s combined capital city final auction clearance declined to 59.4%, down from 63.2% the prior week and 64.8% over the same week the previous year.
The result was also the first time the final clearance rate had fallen below 60% since the week ending 2 February 2025, prior to the 0.25% rate cut.
Source: CoreLogic
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Sydney’s closing clearance price fell to 59.2%, marking the worst end result for the reason that week ending February 2. The end result was considerably decrease than the prior week’s clearance price of 64.1% and the 68.8% reported in the identical week final yr.
Melbourne’s closing clearance price was 60.5% final week, in comparison with 64.5% the earlier week and 60.3% on the similar time final yr.
The next chart, which plots the month-to-month common public sale clearance charges throughout Sydney, Melbourne, and the mixed capital cities, reveals that clearance charges retraced in March following the robust bounce in February.
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CoreLogic’s day by day dwelling values index additionally reveals that worth momentum has stalled throughout the key markets, led by Sydney.
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Most economists count on the RBA to chop the money price by 0.25% at its subsequent assembly in mid-March, adopted by two extra cuts this calendar yr.
Decrease rates of interest, mixed with stimulatory housing policies no matter who wins the upcoming federal election, are more likely to usher in one other housing upswing.
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