Why Are Property Prices STILL Rising? (No One Expected This) | Dr Andrew Wilson
Why It Matters
Understanding the regional divergence and the lagged effects of monetary tightening helps investors allocate capital wisely and policymakers gauge where housing supply constraints may exacerbate price pressures.
Key Takeaways
- •National house prices rose 0.9% in March, 13 months straight.
- •Smaller capitals like Darwin and Perth outpaced Sydney and Melbourne growth.
- •Auction clearance rates fell in Sydney, remained stable elsewhere.
- •Higher interest rates and global uncertainty haven't stopped price gains.
- •Unit markets mirrored house growth, especially strong in Brisbane and Perth.
Summary
The video examines why Australia’s property market continues to climb despite rising interest rates, inflation worries and geopolitical headwinds. Host Michael Yardney and housing economist Dr. Andrew Wilson review the latest My Housing Market data, highlighting a 0.9% month‑on‑month increase in the weighted median house price – the 13th consecutive month of growth – and an 11% rise over the past year, which still qualifies as a boom‑time market.
Key insights reveal a stark regional split. While Sydney and Melbourne show modest gains (0.8% and 0.5% respectively) and declining auction clearance rates – Sydney’s falling from above 70% to the low‑60s – smaller capitals such as Darwin (+4.4%), Perth (+1.6%), Brisbane (+1.4%) and Canberra (+1.9%) are driving the national uplift. Unit prices echo this pattern, with Perth and Brisbane units posting over 50% growth in two years.
Notable examples include the comment that “we have 13 consecutive months of house price growth” and the observation that “auction activity surged in the pre‑Easter ‘super week’, keeping clearance rates from collapsing.” The analysts also note seasonal effects – March’s data lack the holiday‑month dip seen in February and January – and warn that April’s Easter and Anzac holidays could temper activity.
Implications for investors are clear: focus on high‑growth regional markets and affordable segments, monitor the lagged impact of higher rates and oil price volatility, and anticipate a possible short‑term slowdown during holiday periods. Persistent undersupply across the country suggests that, despite short‑term headwinds, price appreciation may remain resilient.
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