June Quarter 2024

Key Insights

• The national housing market continues to be severely impacted by high costs, elevated demand and a low supply profile which are collectively
  contributing to the national UDIA Housing Index (UHI) recording a below average level of performance.
• The UDIA Housing Index for all of Australia improved by 4% in the June quarter to reach 95.1 points which is the strongest reading since the December Quarter 2022 (on seasonally adjusted terms).
• The modest improvement in the UHI in the June Quarter is however below the UHI long run national average (97.8) and 12% below the peak achieved in June 2021.
• The UDIA Housing Demand Sub-Index increased 6.7% in the June Quarter to 127 points which is the highest level recorded in almost a decade and is now 26% above the long run average.
• The UDIA Housing Demand Sub-index’s performance remains underpinned by the maintenance of historically high rates of population growth, with a modest improvement in owner occupier lending activity in recent months providing additional buoyancy (noting there has also been a strong lift in investor lending across the quarter).
• The UDIA Housing Supply Sub-Index continues to languish at historically low levels of activity with an index reading of 88 points which is 12% below the long run average and 21% below peak performance.
• Weighing negatively on the UDIA Housing Supply Sub-Index is the on-going softness of dwelling approvals and dwelling commencements (currently 20% & 21% lower than the long run average respectively) and the ongoing paucity of rental listings.
• The UDIA Housing Costs Sub-Index remains at a series high level of 154 points having grown 36% over the last two years. Despite the dramatic increase (since September Quarter 2021) there has been a stabilisation in the Cost Sub-Index over the last three quarters reflecting a pause in interest rate rises and moderation to input cost inflation to housing construction.

The Interactive UDIA Housing Index (UHI) & UDIA Housing Dashboard

Latest data refresh: 29 August 2024

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