According to a recent report by CoreLogic, the combined value of Australian housing rebounded to $10 trillion at the end of August, with the median home value reaching $732,886 and the stock of housing increasing to around 11 million properties.
The national recovery in home values began in March, with values rising 4.9% through to August, wiping out around half of the preceding downturn between April 2022 and February 2023. This recovery trend in values comes despite a cost of living crisis, low consumer sentiment levels, and four increases in the cash rate so far this year amid the fastest rate hiking cycle on record.
Factors such as net overseas migration, constrained supply, and the use of savings, profit, and equity may explain why housing values have continued to rise despite seemingly unfavorable growth conditions. However, the housing market outlook remains uncertain due to high serviceability buffer and economic performance.