Mid-sized capitals to lead house price falls
To date, Australia’s housing correction has been driven by the two largest capital cities, Sydney and Melbourne. As illustrated below, Cotality’s daily dwelling values index has recorded a 6.6% decline from its peak across the five major capital city markets, led by declines of 8.8% recorded in Sydney and 7.4% in Melbourne: However, Cotality’s daily The post Mid-sized capitals to lead house price…
Australia's housing market downturn has primarily affected the largest cities, Sydney and Melbourne. Recent data shows that mid-sized capitals like Brisbane, Perth, and Adelaide are now recording significant price declines. The Cotality Daily Dwelling Values Index indicates an 8.8% dip in Sydney and a 7.4% drop in Melbourne, while Brisbane, Perth, and Adelaide are experiencing sharper decreases.
Market indicators indicate that the housing correction will intensify in these mid-sized cities. The number of new listings in Brisbane, Perth, and Adelaide has surged recently, while Sydney and Melbourne have seen a decline in new listings. Additionally, the annual growth in total listings has surged across mid-sized capitals, outpacing the modest growth in Sydney and Melbourne.
The time taken for homes to sell has increased in all markets, but the rise is most pronounced in Brisbane and Perth. This suggests a shift in the supply-demand balance, with mid-sized capitals leading the price correction. Historically, these mid-sized markets witnessed the highest price growth over the past six years, with median values more than doubling. Consequently, it appears they will undergo a 'mean reversion' as interest rates rise and government policies change.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
