Property prices to fall despite anticipated interest rate cuts | The Business | ABC News

Summary

This transcript covers the current state of Australia's housing market, revealing a slowing trend with rising stock levels and fewer buyers. Despite these challenges, some buyers are still managing to purchase properties, although the market remains cautious. A slight national price increase occurred in November, with some cities like Perth and Adelaide seeing growth. Experts forecast that interest rate cuts in 2025 could help buyers, but the market is expected to continue declining in many cities in the short term. The transcript also discusses a comedian's attempt to sell his house without an agent, highlighting the importance of understanding the market and following up with potential buyers.

Takeaways

• 😀 The Australian real estate market is showing signs of slowdown, with fewer buyers and lower auction clearance rates.
• 😀 National property prices edged up by 0.1% in November, but some cities, like Sydney and Melbourne, saw price declines.
• 😀 Perth led the monthly gains in property prices, followed by Adelaide, Brisbane, Darwin, and Canberra.
• 😀 The current downswing phase of the market is expected to continue with rising stock levels and fewer buyers compared to last year.
• 😀 Auction clearance rates have been below 60% for six consecutive weeks, indicating a cooling market.
• 😀 Interest rate cuts forecasted for 2025 could stimulate demand, but their impact may take time to materialize in property sales.
• 😀 Despite the downturn, some buyers are still able to make purchases, albeit cautiously.
• 😀 Real estate experts predict a slowdown in major cities like Sydney and Melbourne, while cities like Perth, Brisbane, and Adelaide may see modest growth in 2025.
• 😀 Comedian Brett Duza attempted to sell his house without an agent by creating a DIY marketing campaign, but it ultimately failed due to lack of follow-up and poor-quality photos.
• 😀 Duza recommends that sellers educate themselves about the market and property values before attempting a DIY sale, as understanding the market is crucial for success.
• 😀 Despite his failed attempt, Duza encourages others not to be deterred by DIY selling, but to be prepared and informed.

Q & A

What is the general trend in the Australian housing market as discussed in the script?

The script indicates that the Australian housing market is currently experiencing a downswing phase, with fewer buyers, rising stock levels, and lower clearance rates. Property prices are declining in major cities like Sydney and Melbourne, while some regions like Perth, Adelaide, and Brisbane are still seeing growth, though at a slower pace.

What impact has the interest rate trend had on the real estate market in Australia?

Interest rates have significantly impacted the market, as high rates have caused pressure on buyers. Though rate cuts are forecasted for 2025, they are not expected to have an immediate effect. Until then, the market is likely to continue experiencing declines in many capital cities.

What does the clearance rate indicate about the state of the real estate market?

The clearance rate, which has been below 60% for the past six weeks, is a key indicator of the market’s condition. A lower clearance rate suggests weaker buyer demand and a slowing market, where fewer properties are selling at auction.

How have property prices changed in Australia from November 2023 to the end of the year?

National property prices have seen a slight increase of 0.1% in November 2023. However, over the entire year, prices have risen by 5.5%, with Perth leading the gains, followed by Adelaide and Brisbane. On the other hand, cities like Hobart, Sydney, and Melbourne experienced price declines.

What challenges did comedian Brett Duza face when attempting to sell his house without an agent?

Brett Duza faced several challenges, including creating his own marketing campaign on YouTube that wasn’t taken seriously. He also made rookie mistakes, such as using iPhone photos and failing to follow up with potential buyers. Ultimately, he had to call in a real estate agent to complete the sale.

What lessons did Brett Duza learn from his DIY house-selling experience?

Brett learned that understanding the market and timing the sale are crucial. He emphasized the importance of professional photography and proper follow-up with interested buyers. Despite his setbacks, he encourages others to consider DIY sales but to be well-prepared and informed.

What is the forecast for property price trends in 2025?

The forecast suggests that property prices in 2025 may see incremental growth in some regions, especially in Perth, Brisbane, and Adelaide. However, the growth may slow down, and the market may become more balanced overall, with less dramatic fluctuations.

What is the current market situation in Perth, Adelaide, and Brisbane compared to other cities?

Perth, Adelaide, and Brisbane have seen monthly gains in property prices, with Perth leading the charge. In contrast, cities like Sydney, Melbourne, and Hobart have experienced price declines, highlighting a regional disparity in the market.

How have the expectations of interest rate cuts been affecting the market?

There is an expectation that interest rate cuts will occur in 2025, which could ease pressure on buyers and stimulate demand. However, these cuts seem to be delayed, and their impact may take some time to be reflected in property sales.

What advice does Brett Duza offer to potential DIY home sellers?

Brett advises DIY home sellers to thoroughly understand the market and their property's value. He also recommends following up with potential buyers and being aware of the right time to sell. He suggests not making rookie mistakes like using poor-quality photos.