Property downturn hits 93% of city suburbs
Key takeaways
- Australia's housing market downturn is widening, as 93% of city suburbs recording a drop in prices.
- Darwin is now the only capital city where property prices grew over the last three months.
- What's next: According to Cotality figures demand is weaker, meaning there are more houses for sale, and they're on the market longer.
The latest home value figures from Cotality show that Australia's property downturn has now spread from Sydney and Melbourne to the rest of the city suburbs.
Prices recorded a national fall of -0.9% month-on-month, after falling -0.7% the month before.
Darwin recorded a 0.6% price increase for the month. It's the only capital city still growing. Perth and Hobart recorded price drops for the first time in this downturn, falling -0.8% and -0.2% respectively.
Want a better home loan?
Switch to a better deal
Nationwide, property prices have fallen 3.1% in the last three months. Sydney and Melbourne are continuing to see the biggest price drops.
Sydney saw prices fall -1.4% for the month and -4.7% for the quarter. That's a solid drop, but with the median property price in the harbour city still sitting at $1.22 million, actually buying a house there is still unfathomably expensive.
Melbourne prices fell -1.1% this month and -3.9% for the quarter. Median prices are now well below $800,000, making Melbourne easily one of the cheapest capital cities. Only Hobart and Darwin are cheaper in median terms now.
Softer demand, more listings
"The softer trend in values is underpinned by weaker transaction activity," says Cotality research director Tim Lawless.
"Sales volumes are tracking well below both year-ago levels and the five-year average levels."
Auction clearance rates remain low and properties are staying on the market longer.
Recent interest rate rises and persistently high inflation are also limiting the amount that borrowers can spend on housing, which will make it even harder for property prices to recover in the near future.
Sources
Ask a question