Australia's home prices rise again in sign of market bottom

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Australian home prices rose for a second straight month in April, in a further signal that the nation's property market may have hit a floor ahead of a central bank rate decision on Tuesday.

Figures from property consultant CoreLogic released on Monday showed prices nationally rose 0.5% in April from March, when values were up 0.6%, indicating Australian home prices may have bottomed out after slumping 9.1% from May 2022 to February.

CoreLogic research director Tim Lawless said prices were "stabilising or rising" across most parts of Australia, and there was a good chance consumer sentiment would improve, boosting housing purchases and sales, as interest rates looked more stable. Adding to improved prospects for the housing market, the Reserve Bank of Australia is tipped to hold its interest rate unchanged on Tuesday for a second straight monthly meeting, aGareth Aird, head of Australian Economics at Commonwealth Bank of Australia, said the headwind on property prices from interest rates ratcheting higher had largely run its course, given we were almost at the top of the RBA's hiking cycle.

 

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