Australian house prices fell nationally for the first time in at least 20 months, according to two major monthly indexes.
- The two house price indexes both show a 0.1% drop nationwide in one month
- Both show Sydney, Melbourne and Canberra leading the falls
- Adelaide, Brisbane and some regional areas continued to show strong price increases
Both indexes – from CoreLogic and REA’s PropTrack – put the national monthly decline at around 0.1%.
CoreLogic records this as the first monthly drop since September 2020, while PropTrack forecasts it as the first drop since the start of the COVID-19 pandemic.
CoreLogic reported much larger house price declines for Sydney (-1%) and Melbourne (-0.7%), lowering the national average, while PropTrack estimated both cities were down 0.3% .
Both indexes also found Canberra prices fell last month for the first time in about three years.
Competing data providers also found that price growth remained highest in Adelaide, Brisbane and some regions.
“A clear two-tier housing market has emerged,” said PropTrack’s Paul Ryan.
Shaft change remains attractive
Natasha Di Sano and her husband Daniel, looking for more space to raise their three children, moved their family to a new home last month.
“It was my husband who proposed the idea to me,” Ms. Di Sano said.
“It was about us building a better life for my husband, myself and our three children, giving them more opportunities to be on bigger ground, to feel free to be themselves. , as well as giving us the opportunity to just live a different lifestyle, not so much the fast pace.”
Although not technically a regional move, they sold the house they had, on 500 square meters in Sydney’s northwestern suburb of Kellyville Ridge, about 40 kilometers from the CBD, and moved about twice as far from town to Kurrajong, where their three children now have two and a half acres to run around.
Along with the extra land and 16 hens, their new home has more bedrooms and living spaces, as well as a granny’s apartment.
“We haven’t reduced the loan as much as I guess we’d like, it’s pretty much like we did a swap,” she said.
After the Reserve Bank raised the official interest rate last month for the first time in 11 years, Ms Di Sano is ready for further increases and is now taking action to offset rising mortgage repayments.
“Daniel and I are on a very, very tight budget so we’re able to put that little bit more of a stretch…as a buffer for those tough times that I’m sure are on the way,” she said. declared.
CoreLogic research director Tim Lawless said rising interest rates were just one factor holding back an already slowing housing market, where price growth peaked in May 2021.
“Since then, housing has become increasingly unaffordable, households have become increasingly sensitive to higher interest rates as debt levels have risen, savings have declined and lending conditions have tightened,” he noted.
However, Lawless said some regional markets may be less vulnerable to falling prices, at least in the short term.
“Given that we are already seeing a slowing in the pace of growth in most regional markets, it is likely that we will see growth conditions ease as interest rates rise and pressures worsen. when it comes to accessibility,” he said.
“It can be said that some regional markets will be somewhat insulated from a significant decline in home values due to a persistent imbalance between supply and demand, as we continue to see advertised inventory levels remain extraordinarily low. throughout regional Australia.”
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