25/11/2022
Did you know that house prices are falling?
Over the last quarter property prices have fallen in all capital cities except two. The biggest falls in August occurred in Hobart with a 0.56% decline, Sydney with a 0.49% decline and Melbourne with a 0.47% decline. This was followed by the ACT at -0.39%, Brisbane at -0.32% and Adelaide at -0.12%. Both Darwin and Perth experienced small price increases with a 0.14% and 0.04% rise respectively. Despite this activity, capital city house prices remain up 26% since March 2020 but are expected to continue falling this year as interest rates continue to rise.
Sydney's decrease is following a persistent trend that started in March this year, now 4.8% below their February peak and also the only capital with prices lower than they were in August 2021. Similarly, Melbourne's price decline has been an ongoing trend this year, now sitting 4% below their February peak. The decrease in Brisbane puts them 1.2% lower than their peak in May while the persistent drops in the ACT has put them 2.8% lower than their peak in March. Adelaide has only experienced its first price decrease this year while Hobart has experienced another significant decrease for the city, now 1.7% below their peak in May. While Perth experienced a small increase in prices, Darwin's prices are up by a little over 5% across this past year.
House prices in the regions have also dropped in August, falling 0.34% accumulating to a 1.2% drop over the quarter. They are, however, still up almost 50% since March 2020 and, while still expected to fall this year, are not expected to fall as drastically as the capitals considering their still relative affordability and appealing lifestyle.
SOURCE: https://www.brokernews.com.au/news/breaking-news/regional-home-prices-tumble-at-fastest-pace-in-11-years-281092.aspx
