House prices rose across most of Australia in February, suggesting that interest rate cuts may have an immediate impact on sentiment, according to a Thursday report by ANZ Research.

Capital city housing prices in the country rose 0.3% month-over-month in February after three months of decreases. Melbourne prices lifted 0.4% over the period, ending a ten-month downturn, while Sydney prices rose 0.3% month-over-month after a four-month fall.

Houses in the top price quartile rose 0.6% month-over-month in Sydney and 0.5% month-over-month in Melbourne.

The increase in prices is not expected to lead to the start of a sharp acceleration in housing prices.

Building approvals jumped 6.3% month-over-month in January, from a revised rise of 1.7% in December 2024.

The increase in January was driven by a 12.7% month-over-month increase in private sector unit approvals, soaring 41.6% year-over-year, reaching their highest since December 2022. Housing approvals are expected to trend upward through 2025.

Private sector credit growth slowed to 0.5% month-over-month in January, from 0.6% month-over-month in December 2024, with growth easing across all sub-components.

Housing credit growth slowed to 0.4% month-over-month, likely reflecting the softer housing market in January before the interest rate decision.

The trade balance in goods rose AU$700 million to AU$5.6 billion in January, from a revised balance of AU$4.9 billion in December 2024, driven by a 1.3% month-over-month rise in exports. The volatile non-monetary gold component jumped 78.6% over the period.

Resources exports fell 5.9% month-over-month, likely driven by port disruptions.