October saw the third interest rate cut since June with the Reserve Bank cutting official rates to a new record low of 0.75%. The underlying cash rate in Australia has halved since June.

According to the latest research by Core Logic, the total number of home sales across Australia has fallen by 17% over the past year. Current sales levels are 30% below the peaks of September 2015, and listings are down 21% year-on-year.

Nationally, median sales prices have fallen by 5.2% over the past year and markets in all Australian capital cities have recorded decreases except for Canberra and Hobart. The largest price falls have been in Darwin, followed by Melbourne, Perth and Sydney.

Two interest rate cuts by the Reserve Bank during the winter months seem to be having an effect on the market already. CoreLogic data shows that combined house prices in Australia’s five largest capital cities (Sydney, Melbourne, Brisbane, Perth and Adelaide) have increased by 0.75% over the last three months. Many analysts are tipping interest rates to fall even further before the end of the year.

According to a just released report from ANZ and Core Logic, Australia’s housing affordability is the best it’s been since 2016, helped by recent falls in property values in the Sydney and Melbourne markets. Sydney property prices have recorded the most significant decrease, dropping by 14.5% since their 2017 peaks.

In news this month, we begin to see the property market through a post-election lens. SQM Research chief executive Louis Christopher says there has been a confidence boost to forecasts thanks to three factors: the Coalition’s election victory, a Reserve Bank interest rate cut for June to 1.25%, and the APRA proposing a relaxation of lending restrictions.

In news this month, discussion continues to circulate about the upcoming election and the effect that policy changes could have on the property market. According to Nerida Conisbee, chief economist of REA Group, modelling by independent consultants and both sides of government predict negative gearing restrictions will cause continued falling prices while rents will rise.

It hasn’t been a good month for Sydney and Melbourne housing values, with CoreLogic data revealing median housing prices have dropped around $50K in each of the two capitals. However, Melbourne’s market overall does continue to hold up better than Sydney’s.