Property Prices: Property prices are falling in all major cities except Darwin

Interest rate hikes have left their mark on the cost of houses – with house prices falling in almost every Australian region and every single capital city except Darwin.

CoreLogic’s latest national Home Value Index, released on Thursday, recorded the fourth consecutive month of falling prices, with house prices in Australian capitals falling 1.6 percent in August.

Stocks in Sydney fell the most over the month, down 2.3 percent to a median of $1.3 million, with monthly falls since April taking $114,000, or $927 a day, below the median .

Melbourne values ​​were down 1.5 percent in August and are down 4.4 percent since April, down $51,000, or $415 a day.

The port city's average home price fell 2.3 percent in August, according to CoreLogic's latest Home Value Index

The port city’s average home price fell 2.3 percent in August, according to CoreLogic’s latest Home Value Index

Corelogic datum shows all capital cities except Darwin are in a home price decline

Corelogic datum shows all capital cities except Darwin are in a home price decline

Brisbane, which had previously defied the downtrend, also fell in August, catching up on something like the southern capitals.

Even so, it’s still up 18.1 percent over the past 12 months.

“Just two months ago, Brisbane’s housing market peaked after posting a 42.7 per cent boom in value. In the last two months, the market has turned around sharply, with values ​​down 1.8 percent in August after falling 0.8 percent in July,” said Tim Lawless of Corelogic.

Adelaide, Perth, Hobart and Canberra, which had earlier escaped falling prices as well, slipped in August, sending all capitals except Darwin into a downturn.

Two years of internal migration pushed up house prices in regional centers as city dwellers looked for a sea or tree change, but the downturn now appears to have spread outside of the capitals.

Between March 2020 and January 2022, regional home values ​​rose more than 40 percent, compared to a 25.5 percent increase for the combined capitals.

In the Victorian capital of Melbourne, home values ​​fell 1.5 percent in August

In the Victorian capital of Melbourne, home values ​​fell 1.5 percent in August

Regional home values ​​fell 1.5 percent in August, nearly matching the 1.6 percent drop in the combined capitals.

“The biggest declines in regional home values ​​have come from the commuting centers, where home values ​​had skyrocketed prior to the recent rate hikes,” Lawless said.

‘Over the past three months, values ​​have fallen in the Richmond Tweed market by 8 per cent, in the Southern Highlands Shoalhaven market by 4.8 per cent and on Queensland’s Sunshine Coast by 4.5 per cent.’

Of the 41 regional areas CoreLogic surveyed, only seven saw property values ​​increase in August.

These include the northern suburbs of Adelaide at 0.9 per cent, north east Perth and Mandurah at 0.6 per cent and 0.5 per cent, and the Coffs Harbour-Grafton region at 0.6 per cent.

The annual trend of rising property values ​​is leveling off quickly, Mr Lawless said.

After surpassing a peak annual growth rate of 21.3 percent in November last year, the annual growth rate in the combined capitals has slowed to just 2.2 percent.

Brisbane house prices fell in August but are still up 18 percent over a 12-month period

Brisbane house prices fell in August but are still up 18 percent over a 12-month period

Annual levels across Sydney are down 2.5 percent since last year and in Melbourne 2.1 percent.

However, the downturn has erased only a fraction of the overall surge in property prices during the Covid period.

Prices in Sydney are up 27.7 per cent and down 7.4 per cent since March 2020.

In Melbourne, they rose 17.3 percent and fell just 4.6 percent.

ABS data collected by insurance company Budget Direct and released this week shows Australia’s average house price rose 23.7 percent between 2020 and 2021 – the biggest annual jump in a decade.

ABS data collected by insurer Budget Direct shows Australian house prices rose significantly between 2020 and 2021

ABS data collected by insurer Budget Direct shows Australian house prices rose significantly between 2020 and 2021

Data showed that the median Australian house price rose to just over $900,000 in 2021, up from just over $700,000 in 2020.

That $200,000 jump in value in a single year was the same amount as the combined 2012-2020 period, during which the median price went from $500,000 to $700,000.

Mr Lawless expects the downturn to continue into the end of the year and possibly into 2023.

“It’s hard to imagine house prices stabilizing until interest rates cap and consumer sentiment starts to improve,” he said.

‘From current levels, interest rates are likely to rise by at least another 75 basis points and there is a good chance advertised inventory will accumulate during the spring selling season, giving buyers more choice and further depressing property values.’

House prices in Perth are up 4.9 percent over 12 months to a median of $561,781

House prices in Perth are up 4.9 percent over 12 months to a median of $561,781

Australia’s central bank hiked interest rates for the first time in 12 years in May, and the official interest rate has since risen by 1.75 percentage points.

Markets expect another half a percentage point when the RBA board meets on Tuesday.

PERCENT CHANGE IN VALUE

SYDNEY -2.3 for August and -2.5 for 12 months. Average $1,066,493

MELBOURNE -1.2 for August and -2.1 for 12 months. Average $782,053

CANBERRA -1.7 for August and 7.8 for 12 months. $909, 748 mean

BRISBANE -1.8 for August and 17.5 for 12 months. Average $762,284

ADELAIDE -0.1 for August and 21.8 for 12 months. $652,959 mean

PERTH -0.2 for August and 4.9 for 12 months. Average $561,781

HOBART -1.7 for August and 5.8 for 12 months. Average $714,370

DARWIN 0.9 for August and 6.3 for 12 months. Average $512,531

Source: Corelogic Home Value Index, published September 1, 2022

https://www.dailymail.co.uk/news/article-11167061/Property-prices-House-values-drop-capital-city-except-Darwin.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Property Prices: Property prices are falling in all major cities except Darwin

Emma Colton

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