The latest Westpac consumer sentiment survey showed that Australians have become bullish on house prices.
House price expectations hit a cyclical high, whereas the ‘time to buy a dwelling’ sub-index also shot higher.
The improving sentiment has also been reflected in the auction market, where the national clearance rate has climbed to its highest level since early 2024.
As illustrated below, a rising auction clearance rate has historically been associated with rising dwelling value growth.
This weekend’s preliminary auction clearance results from Cotality continued the trend, with the national preliminary clearance rate climbing to 75.3%—the highest result since February 2024—based off the highest weekly volume of auctions held since mid-June.
Source: Cotality
The strong result was driven by Sydney, where 79.0% of auctions have reported a successful result based on the preliminary numbers, the highest result since the first week of April last year (81.6%).
Melbourne recorded a preliminary clearance rate of 75.4%—the 17th consecutive week where the preliminary clearance rate has been above the 70% mark.
Cotality’s daily dwelling values index has recorded rising price growth at the aggregate 5-city, driven by Sydney.
With financial markets tipping between two and three more 25 bp rate cuts by mid-2026, Australians are right to be bullish on prices.
As illustrated below by The AFR, home prices typically rise by double-digit rates two years after the start of a rate-cutting cycle by the RBA.
The Albanese government’s 5% deposit scheme for first home buyers will provide more stimulus to the market when it takes effect on 1 January 2026.
