Australia’s housing price falls days away from a 40-year record
Toward the start of each month, Cotality makes revisions to its housing price index, adjusting it for the developments not previously captured in its data. As the charts below of past revisions in relatively recent months indicate, when housing prices are falling significantly, the downward revisions can be sizable. In this, the latest revisions which The post Australia’s housing price falls days…
Australia's housing prices are inching closer to a 40-year record low, according to recent revisions from Cotality's housing price index. The latest adjustments reveal a steep decline in housing prices across major cities, with Perth and Brisbane experiencing the most significant drops. Perth's prices are now down by 9.10%, followed by Brisbane at 8.01%. Melbourne and Sydney have experienced slight revisions, with Melbourne increasing by 0.1% and Sydney dropping to third place in the national housing price fall rankings.
The market is now 0.3 percentage points away from the largest price falls recorded in at least 40 years. With interest rates set to rise, potentially reaching levels not seen since 2008, and investor demand for existing properties declining, the outlook for the housing market appears bleak. Australia's history shows that housing prices typically recover quickly after declines, often spurred by external factors such as interest rate cuts, government intervention, or a rental crisis.
However, with these potential catalysts absent and factors like rising interest rates, falling investor demand, and a projected decrease in migration looming, prices may continue to slip further than anticipated.
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