Prices have been falling since they peaked in April and many economists expect that by the time the housing market hits its lowest point, prices will have fallen by at least 15 per cent. If that happens, it would make it the largest downturn on record in Australia.
The current property market is particularly sensitive to interest rate changes, given homeowners are facing a “quadruple whammy”, stretching them to their limits.“The rate of decline is far worse than what we saw through the previous downturn. Affordability is more stretched, household indebtedness is higher and then this dual factor of inflation and rising interest rates is more hard hitting,” says Tim Lawless, Asia-Pacific research director at CoreLogic.
First, when it comes to the capital cities, you tend to see Sydney and Melbourne lead the cycle and smaller cities such as Brisbane and Adelaide follow. Although there are exceptions. At the lower end of the market, in regions like Blacktown, Central Coast and south-west Sydney, house prices are still rising.
Mr Lawless points out that through every down phase, the annual gain in housing values in the 12 months leading up to the market peak has been equal to or higher than the entire peak to trough decline that follows.
2022 Albo vote for Labor only Labor can lower the cost of living. Albo 3rd month in the job Banks raise interest rates again. Power bills up Gas bills up Petrol up & Albo will put a 23cent tax on petrol Sep Food cost up Voters Remorse Anyone?
15% looks way too low a fall from phenomenal rises of the past.Some listings of over $1M with over 25 years ageing look unsustainable in today’s times. Correction long overdue.
not going to happen
Still won’t be at 2020 levels so big deal