CoreLogic’s daily dwelling values index has been updated to 30 April, which shows that that dwelling values across Australia’s five major capitals rose by 0.3% over the month, led by strong growth across Brisbane, Adelaide and Perth:
However, both Sydney and Melbourne dwelling values fell for a second consecutive month, down 0.2% and 0.1% respectively in April.
The next chart plots monthly price growth across the five major capitals, which has been stable for three consecutive months at levels well below last year:
Accordingly, quarterly price growth across the five major markets has faded to just 1.0% – a sharp deceleration from the peak growth of 7.1% recorded in the May quarter of 2021:
Quarterly growth is increasingly two-speed, with solid-to-strong growth recorded across Brisbane, Adelaide and Perth offset by falls of 0.5% and 0.1% respectively across Sydney and Melbourne:
Given Sydney and Melbourne are the nation’s two most expensive major capital city markets, they should be most sensitive to interest rate increases.
Therefore, with virtually all economists and markets tipping sharp rate rises over the next 18 months, it stands to reason that Sydney and Melbourne will lead house prices down.
For these two cities, the house price correction has already begun.
