Our supermarkets have swapped slogans with the real estate industry as Aussie homes drop at their fastest rate since 2008. Realty's take over the "Down down prices are down" promise across the nation may have just begun. See how each state's house value went down as interest rates rose.
Australian economists are touting ranges from 10 to a 30 per cent drop in house prices
CoreLogic reports "the fastest rate of falling house values since the GFC and 1980s recession".
In only a Quarter, interest rates have risen 125 points, with an expected increase of 50 basis points to add to our mortgage woes this month.
July's Home Price Index
With price levels in the nation's capital higher than all capital cities apart from Sydney, stretched affordability may weigh on price growth over the coming period as interest rates increase.
Sydney home prices fell again in July for the fifth consecutive month. Prices are now down 3.4% from their February price peak and are up only 2.5% over the past year. Higher interest rates may be weighing more heavily on growth in Sydney – the most expensive national market.
Brisbane prices recorded another small fall in July. However, prices are down only a fifth of a per cent since May 2022, and remain almost 50% higher than in March 2020. Brisbane continues to be the strongest market in the country over the past 12 months – with prices up 21% over that period – outperformance that looks set to continue.
Home prices in Melbourne fell for the fourth consecutive month in July. Prices are now down 3.1% from their peak in March 2022. Price growth has slowed considerably since mid-2021 to be up only 2.4% over the past year – the least of any capital city market. Melbourne's median house value is now just under $900,000.
Perth saw a slight increase in home prices in July, with updated June figures indicating a fall. Perth has not yet seen price growth slow down at the same rate as in other capitals. Prices have increased by 8.8% over the past year, only 2 percentage points below the rate seen at the start of the year.
Darwin prices fell 0.24% in July. Price growth in Darwin has slowed rapidly in 2022 and is likely to see further falls. Prices are up by just over 5% in the city over the past year.
Prices were up slightly in Adelaide in July and have increased by 21% over the past year. This makes it the second strongest capital city market, just after Brisbane.
However, monthly price growth has slowed rapidly. It was persistently above 2% per month this time last year. We expect Adelaide to see smaller falls than other markets
Hobart recorded a price fall in July, after seeing price growth slow throughout 2022. However, Hobart remains one of the top performing markets across the country, with prices up 14% over the past year.
The ACT recorded a further price fall in July. Prices are now down 1.6% from their peak in March. Price growth has slowed rapidly, with the annual pace of growth falling from 30% in late 2021 to 11% now.
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Until next time and thanks for yours!