PHOTO: The housing market is moving through a peak rate of growth. Picture: Annette Dew Source: News Corp Australia
There are signs Australia’s overheated housing market is starting to cool, new data shows.
Recent CoreLogic figures showed residential property prices have surged at a near record-breaking pace, with the national growth rate in March the fastest in 33 years.
The reasons include record low interest rates, a stunning lift in consumer confidence as the economic recovery beats expectations, stimulus measures and stubbornly low stock levels, which has induced FOMO (fear of missing out) among buyers.
“But … there are some early signs the exuberance in the housing market may be peaking,” CoreLogic’s Tim Lawless said on Monday.
“This isn’t to say housing values are about to reverse; a more likely scenario is the housing market is moving through a peak rate of growth and the pace of capital gains will gradually taper over coming months.”
He said price rises had already started to ease in late March and auction clearance rates had also edged lower, with the Easter period marking a subtle softening.
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