House Prices on the Rise Ahead of The Federal Election

As Australians prepare to head to the ballot boxes for a decisive and impactful Federal Election weekend, Cotality (formerly Corelogic) has released April’s Home Value Index – revealing that national home values have increased for the third consecutive month.

What is the Home Value Index?

The Home Value Index (HVI), also known as the Hedonic Home Value Index, leverages recent property sales across the country to track property trends nationally. It serves as a key metric for analysing the performance of the Australian residential property market. [1]

What’s Powering This Momentum? 

It’s surprising to see such consistent growth given the uncertainty surrounding US tariffs and the upcoming election. Yet, prices have continued to rise – likely fuelled by the Reserve Bank’s rate cut in February and the possibility of another cut around 20 May.
Although home values are rising, buyer and seller activity has softened slightly, with only 644 auctions held across all capital cities last week.
This dip may be temporary, with confidence likely to return after voters have a clearer picture of which party will steer the country’s housing policy.

What Does This Mean for Homeowners?

On the back of a cash rate cut, this is very hopeful news for those in larger capital cities, if your monthly mortgage repayments reduce slightly, your home may increase in value. This means you may have access to more equity in the future. Chat with your local MoneyQuest mortgage broker to discuss how your equity can be used to refinance, renovate or even invest in property.

What Does This Mean for Homebuyers?

If you’re sitting there trying to find a way into the property market with house prices continuously growing, there’s still hope!

A cash rate cut later this year may be the saving grace you need to increase your borrowing power and jump the homeowner gap. Additionally, both the Coalition and Labor party have announced plans to help get first-time home buyers into the market; The Coalition is hoping to let first home buyers deduct mortgage payments from their taxes [2]. Labor intends to reduce the amount required for a home deposit to 5% for first home buyers [3]. If you’re a prospective first home buyer, it may be worth deciding which of these incentives would better support you before casting your vote this weekend.

What’s Next?

Home Values show no signs of fatigue, so we expect them to continue climbing for at least another month. The RBA’s May decision has the potential to further empower the property market and drive more activity.

Regardless, we’ll likely all be relieved to be past a, frankly, exhausting Federal Election. If you’re looking to buy, refinance, or reprice on your home loan, put your local MoneyQuest broker as number 1. We can support you by finding the right rate for you, and we’ll negotiate with lenders on your behalf. Speak to your local MoneyQuest mortgage broker and finance specialist today.

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