- House prices are declining in most capital cities;
- As at the end of September house price valuations were below average only in Perth and Darwin;
- The probability of further cash rate rises means house prices are likely to decline further;
- The peak-to-trough decline in house prices in this cycle is likely to be around 16%.
What has happened to house prices so far this year
House prices declined across Australia in the year to September 2022. They have been on a big roller-coaster ride over the past few years. Three years, ago house prices declined, and this was quickly followed by a period where they then grew at their fastest rate in twenty years. Now they are falling again. The largest declines have been in Sydney and Melbourne. Prices have been modestly up (Canberra is the exception) in most other capital cities. The exception has been Adelaide where price growth has been strong. But even in Adelaide there have been clear signs of the slowing of price growth over the past three months.
To read my full update, click here.
We live in interesting times.
Peter Munckton - Chief Economist