Australia’s home prices keep rising in February, defying rate hike

Australia's housing market demonstrated resilience in February as prices continued their upward trajectory, particularly in mid-sized capitals like Perth and Brisbane, despite the central bank's rate hike the previous month, according to data released by Cotality on March 2. The sustained price growth defied expectations that higher interest rates would cool the property market, suggesting that demand for housing remains robust across the country. The data revealed that Australia's major housing markets, including Sydney and Melbourne, maintained positive price movements in February, though the most significant gains were recorded in secondary cities. This pattern indicates that housing demand is spreading beyond the traditional powerhouse markets, potentially reflecting changing lifestyle preferences and more affordable options in regional centers. Industry analysts suggest that several factors may be contributing to this unexpected price surge, including persistent demand from first-home buyers, limited housing supply in many areas, and continued migration patterns.