Aussie real estate has had some major renovations in the first half of 2022. Trending now across our nation includes a continuing downward sale ability with a sharp rise in listings spending more time on the market before a buy.
We're all moving back in favour of buyers who will soon to take back control of the residential market
Potential purchasers and borrowers are spooked, and what's still to come after an exhausting and expensive three months in a row of costly and intense hikes?
The RBA moving the cash rate from historic lows of 0.1% to what economists are now predicting will not end until we hit somewhere between the 2.5 – 3% range could hurt, and this is all to happen by the final quarter going into the first quarter in 2023.
It is understandably rocking the foundations of every homeowner on the market, struggling or not.
Real Estate July Highlights
Over the 12 months to June 2022, national property prices increased by 11.5%. Down from an annual increase of 23.2% six months earlier and the yearly growth peak of 24.8% in October 2021.
The -0.5% price fall over the June 2022 quarter was the most significant quarterly decline since April 2019.
Over the past three months, the reductions in house prices (-0.6%) have been more prominent than the falls in unit prices (-0.3%).
The recent run-up in prices, coupled with reducing borrowing capacities as interest rates rise, is likely to see price falls broaden and then accelerate further into 2023.
More expensive cities will record considerable price falls.
A further 7% to 10% fall by the end of next year There have been 15.3% fewer sales over the first six months of this year than in 2021.
While sales have fallen from last year's highs, they remain above the volumes recorded in 2019 and 2020.
By the end of this year, we expect the cash rate to rise to between 2.5% and 3%
Some further rate increases will arrive in early 2023.
Rates to remain on hold with the potential to be reduced in late 2023 or early 2024.
Across each capital city, the price growth rate has slowed over recent months.
The slowing was most in Sydney and Melbourne, where year-on-year, in December 2021, prices were 22.6% higher and 15.1% higher, respectively.
Throughout the regional markets, price growth has been most substantial over the 12 months to June 2022 in regional Tasmania (22.3%) and regional Queensland (22.1%) and weakest in regional Northern Territory (2.2%) and regional Western Australia (10.1%).
Variable mortgage rates and those ending fixed terms will incur higher mortgage interest costs.
The renewed outlook in which prices continue to fall will reduce equity and household wealth.
Data by Proptrack
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Until next time and thanks for yours!