CoreLogic’s daily dwelling values index, which measures price changes across the five major capital cities, fell another 0.10% in the week ended 9 June – the fifth consecutive weekly decline:
Once again, the falls were driven by Sydney (-0.28%) and Melbourne (-0.13%), whereas prices rose across the other major capitals:
Quarterly growth across the five major capitals has slowed to just 0.1%. Solid-to-strong price growth across Brisbane (4.4%), Adelaide (5.7%) and Perth (2.6%) have been offset by falls across Sydney (-1.7%) and Melbourne (-0.9%):
Since peaking in February (Sydney) and April (Melbourne), dwelling values have fallen by 1.9% (Sydney) and 1.0% (Melbourne) respectively.
Finally, since the beginning of 2022, dwelling values across the five major capitals have risen 1.4%. Again, solid-to-strong growth across Brisbane (9.6%), Adelaide (10.2%) and Perth (3.9%) have been offset by falls across Sydney (-1.2%) and Melbourne (-0.7%).
With the Reserve Bank now lifting interest rates aggressively, I am anticipating sharper price falls led by Sydney and Melbourne.
How deep the correction goes will depend on how aggressively the Reserve Bank tightens. Pass the popcorn.
