Australia's Housing Market Defies Rate Hike, Surges in February

In a surprising turn, Australia's housing market demonstrated resilience in February, with cities such as Perth and Brisbane showing substantial gains despite a recent interest rate increase. Data from Cotality indicated a national price rise by 0.8% to a record median value of A$922,838.

This increase comes in the wake of the Reserve Bank of Australia's decision to raise interest rates by 25 basis points last month, following a period of inflation re-acceleration. Despite the surge in housing prices, Sydney and Melbourne saw no significant changes, hinting at potential stabilization in the future, said Cotality's research director, Tim Lawless.

The growth was notably driven by lower inventory levels and increased activity among first-time buyers and investors in more affordable segments of the market. Lawless highlighted that the availability of credit for higher price points is constrained by serviceability issues.