Each month we take a graphical deep dive into the Antipodean housing markets.
Momentum in the Australian housing market is facing a test if the RBA Board lifts the cash rate tomorrow.
To date, lower interest rates, excess demand and ramped-up government incentives for first home buyers have supported a relatively strong pick up in dwelling prices.
While monthly dwelling price growth in Australia slowed a little over December and January (post seasonal adjustment), it remained strong. Price growth remained fastest in Perth, Brisbane and Adelaide, and considerable more moderate in the largest cities of Sydney and Melbourne.
Nationally, the stock of homes for sale remained at a low level in January, and much lower than at the start of the year despite reasonably healthy new listings. This dearth of supply is likely to support solid housing price growth in at least the near-term.
