The Australian share market was flat for the month of February, with the All-Ordinaries Index gaining 0.6% for the month and closing at 7,959.50 points. The Australian dollar weakened by 1% over the month with 1 Australian Dollar buying 65.07 United States cents.
Global share market returns were generally positive in February, with the United States Dow Jones Index gaining by 2.2%, the London FTSE flat, the Japan Nikkei 225 gaining by 9.8%, and the Hong Kong Hang Seng Index gaining by 6.4% for the month.
The Reserve Bank of Australia (RBA) board kept rates on-hold at 4.35% per annum in its February meeting, with the next meeting to consider rates to be held on the 19th of March.
With expectations that interest rates will no longer be increasing, continued population growth and a general lack of housing supply, it appears as though the residential property market has recovered from its dip in value as shown in the charts below.
Source: CoreLogic
On an Australia-wide basis, dwelling values have increased by 8.70% for the year to January 2024. While housing affordability is clearly an issue, a strong property market is generally a positive thing for the consumer side of the economy (and by extension economic growth).
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This article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation, and investment objectives.