Home prices strike first decline since the onset of the pandemic


Australia’s home prices marked their first drop since the start of the pandemic, with the price index showing a 0.11% decline in May.

PropTrack’s latest Home Price Index showed an overall slowing in monthly price growth across Australia, with four capital cities diving into the red.

Sydney and Melbourne remained the biggest losers, with declines of 0.29% and 0.27% over the month. Hobart also reported a decline, albeit only marginal at 0.05%.

Meanwhile, the Canberra recorded its first decline in over three years, ending May with a 0.12% fall in home prices.

On a yearly basis, only Brisbane and Adelaide maintained growth rates of above 20%, and therefore were the strongest capital cities in terms or price appreciation in May.

Overall, capital cities posted a 0.15% decline in May.

On the other hand, home prices across regional areas managed to stay afloat over the month with a 0.01% growth.

PropTrack economist Paul Ryan said the two-speed housing market trend has already clearly emerged.

“Affordable, lifestyle regions of Brisbane, Adelaide, regional NSW and Tasmania continue to see solid growth, with flat or falling prices elsewhere,” he said.

Mr Ryan said the speed of official interest rate hikes and wages growth remain the key “unknowns” that would impact price movements over the rest of the year.

“Conditions have now shifted rapidly from 2021. This follows expectations of sharply higher interest rates in 2022, which will erode the affordability of existing prices.”

Photo by brenoassis on Unsplash

Top Suburbs :





east victoria park





Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we’ll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We’ll even help with the paperwork. Plus an appointment is free.


We value your privacy and treat all your information seriously – you can check out
our privacy policy here


Source link

Call Us Now