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The REA Group Property Demand Index has revealed a slowdown in demand levels in November, driven by declining demand in Queensland and the ACT.
REA group chief economist Nerida Conisbee says November recorded a slim increase in real estate demand.
“Perhaps there is a sense of nervousness among Australians following the recent US election because demand levels stabilised in November, increasing by just 0.1 per cent during the month,” Ms Conisbee said.
“New South Wales saw a small decline in demand, driven primarily by affordability issues in Sydney, now likely the most expensive city in the world by income to price ratio.
“Victoria, despite continued concerns of apartment over-development in Melbourne’s CBD, saw demand increase by 3.3 per cent.”
Ms Conisbee said both Western Australia and the Northern Territory continued to experience lower levels of demand.
“However, both states recorded an uplift in demand for the month of November and the year to date,” she said.
“The result suggests that, barring any surprising negative economic news or changes to the supply outlook, the bottom of the housing market is close.”
Ms Conisbee said Tasmania is still seeing “elevated levels of demand” and is now the most in-demand market in Australia, with affordability the key factor driving this interest.
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