2023 marks the 35th year since Blackshaw first commenced trading – originally from very modest premises at Griffith shops. In that time, we have grown organically and sustainably into one of the largest networks of locally positioned offices across the ACT, Queanbeyan and surrounds, to the South Coast region.
MARKET UPDATE
The market is on the move with strong indicators of property values increasing. The RBA has economists captive on consumer spend as figures continue to increase in spite of concerns for further rate hikes. With stock levels very low - and typically staying that way over the winter months, coupled with stronger buyer sentiment we are anticipating active market conditions for the next few months.
According to the Corelogic Hedonic Home Value Index (HVI) report, released on 1 June 2023, housing recovery accelerates with May recording highest growth of 1.2% not seen since November 2021. “HVI recorded a third consecutive monthly rise with the pace of growth accelerating.”
"The decision by the Reserve Bank to lift the cash rate in May has not deterred the current home price rebound," PropTrack Home Price Index – May 2023 report author Eleanor Creagh wrote. Canberra (+0.65%), Perth (+0.64%), Sydney (+0.58%) and Adelaide (+0.58%) recorded the largest increases in May, with Canberra rebounding recent falls.
The Australian Financial Review reported on 4 June, that rising house prices could reverse in the next six months unless interest rates start falling. Echoing the CoreLogic data, TCorp chief economist, Brian Redican argues “we don’t see rate cuts coming anytime soon. The Reserve Bank is still warning about the risk of further rate increases coming through, so that’s going to remain a headwind for further increases in house prices above what we’ve seen over the last couple of months.
“Unless we see lower mortgage rates in six months’ time, then I think the momentum in the housing market will start to wane quite quickly and could easily reverse,” according to Mr Redican.
In local news, “Canberra property prices are rebounding, but the recovery might be short lived if the Reserve Bank jacks up interest rates again after yesterday’s nasty inflation numbers,” reports Ian Bushnell, Riotact 1 June 2023. Based on the unexpected increase in the latest Consumer Price Index figures which rose to 6.8 per cent in April from 6.3 per cent in March, fuelled by rising house prices.
Blackshaw Update
Blackshaw teams produced brilliant results across the network with many individual highlights – including a big new price record in Lyons for 38 Scottsdale Street, selling $725,000 above the previous record, and a nice addition to our brands collection of suburb record prices. Did you know Blackshaw has significantly more suburb records than any other agency across all our service areas?
Last week, close to 40 of our sales and property management team members and principals travelled to the Gold Coast to attend the 25th year of the Australian Real Estate Conference (AREC), and it did not disappoint. We are keen to see the learnings and insights implemented across all our teams.
Helpful articles:
- CoreLogic Hedonic Home Value Index
- PropTrack Home Price Index - May 2023
- AFR – why rising house prices could reverse in the next six months
- RBA – Measures of Consumer Price Inflation: 31 May 2023
- Riotact Canberra house prices on the up again but interest rate clouds are gathering: 1 June 2023
For more information please contact your local Blackshaw Real Estate Professional.
