Australian home values have fallen for a fifth consecutive month, with prices dropping in all capitals except Darwin.
Home values across the country dropped 1.4 per cent in September after a 1.6 per cent fall in August, according to CoreLogic‘s national Home Value Index.
In the capital cities, Sydney values were down 1.8 per cent in the month, while Melbourne values fell 1.1 per cent and in Brisbane they dropped 1.7 per cent.
Adelaide and Perth saw small monthly reductions of 0.2 per cent and 0.4 per cent respectively, while in Darwin values remained flat.
The September decline marks the fifth fall in a row in the national index as the impact of consecutive interest rate hikes plays out in the property market.
The Reserve Bank is tipped again to lift the official cash rate – now at 2.35 per cent – at its monthly meeting on Tuesday, which would put further downward pressure on house prices.
CoreLogic research director Tim Lawless said while property value declines had eased, it was unclear what lay ahead.
“It’s possible we have seen the initial shock of a rapid rise in interest rates pass through the market and most borrowers and prospective home buyers have now ‘priced in’ further rate hikes,” he said.
“However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again.”
He said Sydney was a standout for its falls, with values slipping more than $100,000 – or nine per cent – since the city’s peak prices in January.
Some of the largest drops were in Sydney’s Northern Beaches, where values were down at least 14.5 per cent from earlier this year.
Mr Lawless also pointed to big drops in values in the flood-hit Richmond and Tweed areas in NSW.
Brisbane was also notable for its continued slide, with values now 4.3 per cent, or $33,600, below the June 2022 peak.
“We are still seeing some resilience to value falls around the more affordable areas of Adelaide and Perth, as well as some regional markets associated with agriculture, mining and tourism,” Mr Lawless said.
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