up to date PropTrack Home Price Index In May, it showed that national home prices had fallen for the first time since the pandemic. Sydney and Melbourne lead the waterfall, but more broadly Price increases across the capital are slowing at a record pace..
Home prices have skyrocketed in the last two years, but now mortgage rates are rising. Housing market activity in 2022 slowed sharply from last year’s extraordinary pace, with interest rate expectations rising sharply, mortgage rates rising, housing prices rising and affordable prices falling. did.
In addition to this, expectations for continued rises in interest rates and falling prices weigh heavily on activity, and this combination sees a shift in sentiment and a easing of future buyer demand. In addition, future buyers will not only face higher borrowing costs than in the last two years, but also in the future, as expectations for interest rates rise sharply and cash rates can exceed 2% to reach the end of the year. There is also much more uncertainty about borrowing costs.
These factors are It takes time to sell properties, transaction volumes slow down, and there is downward pressure on home prices... Clearance rates declined as auction volumes also declined, buyers gained a bargaining advantage and fears of missing out subsided. These headwinds will continue to slow demand from future buyers, leading to greater price declines and potentially further easing of activity.
Due to the slowdown in the housing market, some home prices have already fallen, but in some areas they have not.
Analysis of both metro and regional residential and unit sales revealed that Adelaide, Brisbane, and some suburbs of New South Wales and Queensland are backing the recession.
In small capitals and rural areas, it is more affordable to buy a home, and these areas continue to benefit from the relatively affordable benefits and lifestyle and taste changes that have occurred since the outbreak of the pandemic.
The data scores the suburbs based on several metrics. See how fast your home is selling, how many buyers have choices, how many properties are for sale, and whether home prices are still rising. Choose the one with the highest score (Metro and Regional Top 10) from a combination of rising home prices, falling inventory levels and falling stock levels. Here, the buyer’s options are limited and the bargaining power may be low. And where buyers are moving to properties for sale much earlier than at the end of last year (time of decline in the market).
The small number of lists for sale and the reduced time in the market indicate that there are far fewer options for buyers and that competition with sellers can be even more intense. By facing fewer options for potential buyers, it allows them to hold on to price expectations.