Australia’s Property Market: A New Era of Uncertainty and Opportunity - US Stocks Rally on Strong Jobs Data
Many are wondering where the Australian housing market currently stands.
In the wake of rising interest rates and the lasting effects of the global pandemic, Australia's property landscape has undergone a significant transformation.
What was once a red-hot housing boom has evolved into a more nuanced market—where some regions have cooled, while others continue to show remarkable resilience.
Capital cities like Brisbane and Perth remain standout performers, buoyed by interstate migration and relative affordability, while Sydney and Melbourne have seen more measured corrections.
Investor sentiment is cautiously optimistic, with many eyeing opportunities in regional markets and emerging suburbs as the next phase of growth unfolds.
As the Reserve Bank of Australia holds steady on its current rate path, eyes will be on inflation data and wage growth as key indicators for future movement.
In this evolving landscape, adaptability, due diligence, and long-term thinking will be crucial for those seeking to enter or expand within the Australian property market.
At the same time, rental markets are under increasing pressure. Vacancy rates have dropped sharply across numerous regions, driving rents higher and drawing renewed interest from investors.
The resurgence of international students and skilled migrants has added to the demand, especially in inner-city locations.
Meanwhile, ongoing construction delays, persistent supply bottlenecks, and soaring material costs continue to hinder new housing completions—further sustaining upward pressure on prices despite signs of broader market moderation.
On a different note, turning to international markets, US stocks surged, with the Dow and Nasdaq rising following a strong jobs report indicating a healthy labour market.
The S&P 500 marked its longest winning streak in over two decades, highlighting investor optimism despite ongoing economic challenges.
The gains on Wall Street came after the Bureau of Labour Statistics reported 177,000 new jobs in April and an unchanged 4.2% unemployment rate, easing recession worries despite a GDP decline driven by surging imports.
At the close in New York, the Dow Jones Industrial Average rose 564.47 points, or 1.39%, to 41,317.43.
The S&P 500, a key global benchmark, gained 82.54 points, or 1.47%, to 5,686.68, while the tech-rich Nasdaq Composite gained 266.99 points, or 1.51%, to 17,977.73.
Friday’s rally wiped out the S&P 500’s post-“Liberation Day” losses, cutting its year-to-date decline to under 4%.
Solid earnings and hopes for tariff relief have driven an 8.7% gain over eight sessions—the strongest run since November 2020.
Among the "Magnificent Seven," Apple slid 4% on a $10B buyback cut and tariff cost warning, while Amazon dipped 0.12% despite strong earnings due to a cautious outlook tied to tariff uncertainty.
Other mega-cap tech stocks were higher across the board.
Microsoft rose 2% and Meta jumped 4%, while chipmakers Nvidia advanced 2%, adding to yesterday's big gains. Alphabet and Tesla both added 2%.
In bonds, crypto and commodities
The 10-year Treasury yield, which influences mortgage rates and other key loans in the US government bond market, settled at 4.31%.
The policy-sensitive two-year yield, which closely tracks Federal Reserve interest rate adjustment expectations, closed at 3.83%.
Bitcoin, the flagship cryptocurrency, climbed higher on Friday, briefly touching US$97,800 after recovering from an overnight low of US$96,360.
Despite some intraday volatility, the digital asset eventually settled around US$96,050.
As volatility persists, key support between US$72,000–76,000 remains in focus.
A close below US$72,000 could signal deeper weakness and prompt a market reassessment.
Ethereum mirrored Bitcoin's volatile price movement, fluctuating between a daily range of US$1,814 and US$1,870 before settling at US$1,842.
Spot gold holds steady at $3,240, while silver closed at $32.00.
In the energy sector, Brent crude settled higher at $61.20 a barrel, while US West Texas Intermediate crude (WTI) closed at $58.00.
Meanwhile, the US Dollar Index (DXY), which tracks the greenback against a basket of currencies, was lower at 99.80.
The Eurodollar was 1.1290, and the British pound finished at 1.3265. The Japanese yen ended at 144.96, and the Australian dollar was at 0.6440.
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