CoreLogic’s head of Australian research Eliza Owen said, although the data increasingly show the market may have moved through its low point, it was too early to say definitively as risks still loom.“Increasingly, the data is suggesting we’re moving through a trough in the cycle, but we’re still a little cautious to confirm that because there are still massive risks ahead,” Owen said.
But there are still risks from possible further interest rate rises and home owners shifting from lower, fixed interest rates to more expensive repayments that could affect whether the market rebound continues. AMP Capital chief economist Dr Shane Oliver was also reluctant to say that the bottom of the market has been reached.
The agency’s average sale price in the March quarter was $2.07 million, $40,000 above its average list price.That is a reversal from the previous quarter when the average sale price was $2.34 million, a discount of $50,000 from the average list price.“The biggest thing that I believe that has driven the recovery has been the incentive for first home buyers …things have recovered a lot quicker than people were anticipating.