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PropTrack Home Price Index – June 2022

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The PropTrack Home Price Index Shows that country prices continued to fall in June.Brisbane recorded its first price decline since the start of the pandemic, but prices in Sydney and Melbourne are now more than 1.5% below their peak...

The main highlights of the June 2022 report are:

  • Australian home prices fell again in June, down -0.25%. Prices in Sydney (-0.40%) and Melbourne (-0.61%) continued to fall, while prices in Brisbane fell for the first time since April 2020.
  • Monthly price increases fell extensively in June, slowing almost everywhere in the country. Some regional markets fell in June, but the region continues to outpace the capital.
  • Hobart and Adelaide are the highest performing capitals of the month, both of which have reached new price peaks. South Australia and Tasmania continue to record positive growth despite current market conditions.
  • Over the past year, the most prominent growth in the capital has been Brisbane and Adelaide, while regional counterparts in QLD, SA and Tasmania have led growth outside the capital.

Domestic prices continue to fall

Prices will fall only 0.55% from their March peak, but all markets will continue to slow in June due to the RBA’s significant rise in interest rates in early June and expectations of a significant rise in interest rates later this year. You can see a big drop.

However, this is: The third fastest episode in Australian history, Prices have risen 11.5% in the year to June and 34% since March 2020. This is the beginning of a pandemic.

Prices were quickly adjusted to reduce borrowing costs as the pandemic shocked the economy and interest rates fell to record lows.

2nd speed housing market is still clear

The biggest slowdowns are occurring in the most expensive markets of Sydney, Melbourne and ACT. The capital market fell overall that month (-0.35%).

This makes another flat result in the region look relatively strong. Nonetheless, this represents a sharp slowdown in the region and the slowest monthly results since May 2019.

The region benefits from relatively affordable post-pandemics and changing tastes for lifestyle locations and larger homes. Prices have risen 19% in rural areas over the past year, but only 9% in the capital.

Regional strength is particularly pronounced in Queensland, South Australia and Tasmania, with non-capital growth of over 20% over the past year.

The small capitals of Brisbane and Adelaide are also growing strongly against the backdrop of the same trends.

Brisbane and Adelaide have recorded annual growth rates of nearly 23% over the past year, contrary to the 2022 inter-capital trend.

In June, housing and units fell by similar amounts nationwide. However, the post-pandemic period is typified by the desire for more space where home prices (up 13% annually) outperform units (up only 6%).

Brisbane and South East Queensland Price Rising Toppings List

Parts of Queensland, especially the areas around Brisbane and South East Queensland, have become prominent in the fastest growing regions of the country over the past year. However, northern Adelaide has become the third highest performing region of Australia in the past year.

Looking at the entire capital, the outperformance of the area around the city is clear. These areas became more prominent during the post-pandemic period as homes grew and commuting decreased.

Outlook

Domestic prices are now falling in consecutive months. This trend is expected to continue after 2022, with a widespread decline in June. Prices have fallen only 0.55% from their March 2022 peak, but with significant rate hikes in early June, higher rates are expected by the end of the year, and all markets continue to slow.

Price growth slowed rapidly. Annual price growth has halved in the last six months to 11.5%.

The second speed market is still clear. The biggest slowdowns are occurring in the most expensive markets of Sydney, Melbourne and ACT. Brisbane, Adelaide, and the regions of QLD, SA, and Tasmania continue to benefit from low prices, preference has shifted to space since the outbreak of the pandemic, and all markets have more than 20% in the past year. It is rising.

Inflation in early 2022 was expected to raise interest rates, putting pressure on inflation. In early May, the RBA raised its official discount rate for the first time in more than 10 years, and in June it raised rates more than expected. As a result, the expected cost of borrowing at the end of the year is significantly higher than previously thought. Uncertainty about these borrowing costs is eroding buyers’ demand.

The decline is expected to continue in Sydney and Melbourne. Brisbane, Adelaide, and the rural areas of the country are expected to outperform, stimulated by relatively affordable prices and changing tastes. However, if borrowing costs rise as some people expect, even these markets will see sustained price declines over the next few months.

In the long run, increased investor activity and immigration can benefit big cities. Pandemics are changing tastes as both city center locations and apartments are relatively cheap and include the types of housing that investors and recent immigrants prefer.

As is clear in recent months, official rate hikes and the rate of wage growth will continue to be important unknowns for future inflation.

* PropTrack Home Price Index It measures monthly changes in residential real estate prices across Australia and provides current views on real estate market performance and trends. The PropTrack Home Price Index uses a hybrid approach that combines repeat sales and hedonic regression. The repeat selling method matches the resale of the same property, but the hedonic regression estimates the value based on the value of a similar property. The hybrid model allows you to collate two properties in the same Australian Bureau of Statistics Statistics Area 1 (SA1) region of the same type and control the difference in property characteristics as you would for a hedonic regression. The PropTrack Home Price Index is a revised index that includes the entire past history updated monthly with current transaction information.

** This report is realestate.com.au Internal data and data provided by third parties, including state government agencies. It is as of the time of publication. This report is for general information only and is not intended to compose advice and should not be so trusted. If you would like to cite or refer to this report (or the findings and data contained therein) in a publication, please refer to this report as the PropTrack Home Price Index Report – June 2022. look Report Copyright And disclaimer..

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