Aussie home prices to rise only modestly this year as affordability bites

Home prices in Australia will rise less quickly this year than previously thought, with only modest support from further interest rate cuts, according to a Reuters poll of property analysts. The Reserve Bank of Australia cut its cash rate by 25 basis points to 4.10% in February, its first cut in four years, and is expected to cut twice more this year but analysts said such cuts would not ease fundamental affordability pressures. The February 17-26 Reuters survey of 16 real estate analysts predicted home prices would rise 3.7% this year, less than a November poll forecast, following a 5.0% rise last year and 8.0% in 2023.