Interest rate rises lead to dwelling values falling for third month in a row with Sydney prices down 5.2% since January
The reversal of property values likely has a long way to go, with a halt in the rate rises – and perhaps even cuts – next year likely to put a floor in the market, Lawless said.
“Even just a 10% decline [in Melbourne] takes us back to levels roughly the same as July 2017,” Lawless said. “So it’s quite a different scenario from city to city.” “The stronger growth reflects a significant demographic shift towards commutable regional markets, which is likely to have some permanency as more workers take advantage of formalised hybrid employment arrangements,” Lawless said.In July alone rents rose on average 0.9% to be up almost 10% on a year ago. “Rental markets are extremely tight, with vacancy rates around 1% or lower across many parts of Australia,” Lawless said.
While the real estate market has shifted to favour buyers, there is not yet a rush by vendors to sell. CoreLogic said: “Although new listings are higher than at the same time last year and previous five-year average, the flow of freshly advertised stock has fallen 21.4% from the mid-March peak, helping to keep overall inventory levels low.”
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