The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.

The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.

In this months report, the $10bn Housing Australia Future Fund (HAFF) has finally passed the Senate after the Labor Government struck a deal with the Greens to add another $1bn for public and community housing. The HAFF plans to build 30,000 social and affordable homes in the next five years; though, national spokesperson for Everybody’s Home, Maiy Azize says it won’t solve the existing “shortfall of 640,000 homes”.

In this months news, CoreLogic’s Mapping the Market tool shows rent values rose in over 90% of Australian markets over the last 12 months, with Adelaide and Perth’s suburbs topping the list.

In response, the National Cabinet has introduced new measures to counter the rising housing crisis, including a New Home Bonus, a Housing Support Program and a National Planning Reform Blueprint.

It has also agreed to A Better Deal for Renters, which will streamline renters’ rights across the nation with consistent policies for eviction grounds, rental standards and limits on rent increases.

Realestate.com.au Sarah Dowling says economists predict interest rates will fall under the leadership of the new RBA governor Michelle Bullock when she takes over from Mr Lowe in September.

Property prices are on the rise despite the avalanche of rate hikes since May 2023. According to CoreLogic’s data, all major capitals have recorded a month-on-month increase in total dwelling values, with Sydney leading the way at 1.8%.

The 2023 Federal Budget released this month aims to address some of the property market’s greatest challenges. Among its measures is a new tax break for the build-to-rent sector, increased rent assistance and an additional $2 billion to support affordable housing.

In a bid to further help first home buyers, the expansion of Australia’s First Home Guarantee and Regional First Home Buyer Guarantee allows siblings, extended family and friends to submit joint applications from 1 July this year.

After a recent review, the RBA is set to undergo the biggest reform in decades, effective 1 July 2024, with the current board losing its powers to set the cash rate. According to Treasurer Jim Chalmers, the most significant change involves the creation of two boards, one for governance and one for monetary policy, with the latter having dual objectives: monetary stability and employment.

The latest quarter ABS figures show inflation has peaked and is on its way down, justifying the RBA’s decision to halt rate hikes last month. Despite the rate hikes to date, CoreLogic’s data shows clear signs of property prices recovery, with most capitals showing a positive percentage increase this month.