Rate cuts tipped to drive big price rises
Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year.
Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456.
Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493.
House prices lifted by 0.4 per cent in May, with a median value of $977,058.
Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026.
"If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said.
"There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year.
"That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic.
"If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year."
Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year.
Lower interest rates and increased buyer activity are expected to keep property prices rising.
"Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said.
"In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one."
Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months.
National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year.
The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month.
"The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said.
Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year.
Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456.
Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493.
House prices lifted by 0.4 per cent in May, with a median value of $977,058.
Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026.
"If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said.
"There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year.
"That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic.
"If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year."
Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year.
Lower interest rates and increased buyer activity are expected to keep property prices rising.
"Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said.
"In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one."
Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months.
National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year.
The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month.
"The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said.
Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year.
Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456.
Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493.
House prices lifted by 0.4 per cent in May, with a median value of $977,058.
Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026.
"If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said.
"There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year.
"That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic.
"If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year."
Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year.
Lower interest rates and increased buyer activity are expected to keep property prices rising.
"Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said.
"In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one."
Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months.
National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year.
The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month.
"The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said.
Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year.
Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456.
Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493.
House prices lifted by 0.4 per cent in May, with a median value of $977,058.
Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026.
"If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said.
"There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year.
"That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic.
"If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year."
Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year.
Lower interest rates and increased buyer activity are expected to keep property prices rising.
"Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said.
"In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one."
Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months.
National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year.
The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month.
"The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said.
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Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year. Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456. Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493. House prices lifted by 0.4 per cent in May, with a median value of $977,058. Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026. "If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said. "There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year. "That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic. "If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year." Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year. Lower interest rates and increased buyer activity are expected to keep property prices rising. "Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said. "In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one." Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months. National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year. The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said. Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year. Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456. Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493. House prices lifted by 0.4 per cent in May, with a median value of $977,058. Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026. "If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said. "There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year. "That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic. "If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year." Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year. Lower interest rates and increased buyer activity are expected to keep property prices rising. "Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said. "In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one." Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months. National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year. The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said. Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year. Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456. Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493. House prices lifted by 0.4 per cent in May, with a median value of $977,058. Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026. "If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said. "There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year. "That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic. "If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year." Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year. Lower interest rates and increased buyer activity are expected to keep property prices rising. "Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said. "In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one." Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months. National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year. The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said. Home prices are trending higher across Newcastle and Lake Macquarie, with property analysts expecting the region's dwelling value could rise up to 10 per cent by next year. Cotality's Home Value Index (HVI) report, released yesterday, revealed that the region's dwelling value (houses and units) increased 0.4 per cent in May. The median dwelling value is $939,456. Unit values experienced the most substantial growth over the month, up 0.6 per cent to hold a median value of $718,493. House prices lifted by 0.4 per cent in May, with a median value of $977,058. Cotality (formerly CoreLogic) head of research Tim Lawless thinks dwelling prices in the region could rise between 6 per cent and 10 per cent by late this year or early 2026. "If we look at the quarterly rate of growth at 1.4 per cent in Newcastle and Lake Macquarie and you do a simple extrapolation, you're looking at growth over the year at around 5.4 per cent," he said. "There is a good chance we will see growth conditions picking up from here, so I would think there could be growth of 6 per cent to 10 per cent for the year. "That's above what we saw a year ago, and it's about what we saw in 2023, but it's certainly not like what we saw during the pandemic. "If you look at the Newcastle region last year, it had growth of 5.1 per cent, so that is a pick up from a year ago, but it's nothing like we were seeing in 2021, where we saw housing value growth at 32 per cent year on year." Dwelling values in Newcastle and Lake Macquarie climbed 1.4 per cent over the quarter, with the prices strengthening after the Reserve Bank of Australia's (RBA) first rate cut in February. Last month, the RBA slashed the cash rate by a further 0.25 per cent to 3.85 per cent, and economists predict another two rate cuts this year. Lower interest rates and increased buyer activity are expected to keep property prices rising. "Interest rates tend to fuel housing demand through improved serviceability and greater borrowing capacity, and just as importantly, improved sentiment, which is really important for housing decision making," he said. "In the same sense, there are plenty of barriers to a significant level of growth ahead of us, and affordability is the main one." Data supplied by Cotality shows dwelling values in Newcastle and Lake Macquarie rose 4.5 per cent in the past 12 months. In the Hunter Valley (excluding Newcastle), dwelling values lifted 0.3 per cent in May and 4.8 per cent over 12 months. National dwelling values rose 0.5 per cent in May, taking the national index 1.7 per cent higher over the first five months of the year. The gains were broad-based, with every capital city posting a rise of at least 0.4 per cent through the month. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," he said.
