Australian House Prices Experience First Drop in 22 Months
For the first time in nearly two years, Australian house prices have fallen as buyers struggle with affordability and increased property supply
Australia, Sydney, Melbourne, Perth, Adelaide, CoreLogic
Sydney: So, it looks like Australian house prices have finally taken a dip after 22 months of steady increases. Can you believe it? The Home Value Index dropped by 0.2% in December, marking the first decline since February 2023. Major cities like Melbourne and Sydney saw the biggest falls, with prices down 0.7% and 0.6% respectively.
On the flip side, Perth is doing pretty well, with a 0.7% increase, and Adelaide isn’t far behind at 0.6%. But even in those cities, the pace of growth has slowed down lately. Tim Lawless from CoreLogic mentioned that rising costs and higher interest rates are really squeezing buyers, pushing them towards more affordable options.
Speaking of affordability, it’s a real struggle in places like Sydney, where the average home price is a whopping 13 times the average income. With interest rates hitting a 13-year high of 4.35%, many folks just can’t scrape together enough cash to buy a home. Rents are also climbing, but that market is starting to cool off a bit, too.
Looking ahead, CoreLogic suggests that the end of 2024 might set the stage for a slow start to 2025. They think we could see a mix of conditions, with a chance for some value growth if interest rates start to drop. Fingers crossed for a better housing market soon!