This month’s CoreLogic house price results are shaping up to be a shocker, with dwelling values across the five major capitals already down 0.71% over the first 18 days of July.
Moreover, losses have broadened beyond Sydney and Melbourne to Brisbane:
Three out of five major capitals now falling in value.
In fact, CoreLogic’s interactive Mapping the Market tool has just been updated and shows that values are now falling across 41.9% of Australia’s 3,085 house and unit sub-markets, up from 23.6% of markets over the March quarter.
Commenting on the results, CoreLogic Economist Kaytlin Ezzy explained that interest rate hikes are beginning to bite:
“This analysis captures two of the three recent rate hikes so it’s not surprising to see the added downward pressure has had a broader impact on the housing market,” she said.
“Signs of a slowdown and falls in value were already evident before the rate rises, but are now becoming more widespread across Sydney and Melbourne, and beginning to impact the more expensive areas of Brisbane, Canberra and Hobart. Historically, premium suburbs are more volatile than the more affordable areas, values shoot up much faster during an upturn, but are among the first to fall during a declining market.”
As noted above, these figures are only current to 30 June and only capture the first two rate hikes. Since then, we have witnessed further heavy price falls, as illustrated in the charts above and below:
Heavy price falls since the RBA began hiking interest rates.
Given further aggressive rate hikes are tipped for the remainder of this year, price falls will soon spread further across the nation.
What started in Sydney and Melbourne will become a national house price correction.
