Australia's Housing Market Ends Downturn as Rate Cut Lifts Sentiment, Corelogic Data Shows
Australia's property market emerged from a shallow downturn in February as the first rate cut in over four years lifted buyer sentiment, although the still-high borrowing costs and elevated prices are clouding the outlook. Figures from property consultant CoreLogic showed prices across the nation rose 0.3% in February from January, ending three months of declines or no growth. The Reserve Bank of Australia has cautioned that any further easing will be gradual, with market pricing suggesting just two more rate cuts to 3.6% by the end of the year.
- As housing markets begin to recover, policymakers must consider the unintended consequences of low interest rates on household debt levels and financial stability.
- Will Australia's experience in navigating a rate-cut induced housing market revival serve as a model for other countries struggling with similar economic challenges?