Australia’s housing downturn has broadened during October with every capital city and rest-of-state region, apart from regional South Australia, recording a drop in housing values, according to CoreLogic’s latest Home Value Index Report.

CoreLogic research director Tim Lawless said it is probably still too early to claim the worst of the decline phase is over.

Mr Lawless said while the pace of decline is easing, Australian borrowers are continuing to face the double whammy of further interest rate hikes and persistently high and rising inflation.

This causes a genuine risk of the rate of decline re-accelerating as household balance sheets are increasingly stretched thin.

However, Mr Lawless said the housing downturn has remained orderly from the significant upswing in values, which has been supported by a below-average flow of new listings keeping overall supply levels contained.

“There’s also tight labour market conditions, an accrual of borrower savings, and a larger than normal cohort of fixed interest rate borrowers, who have so far been insulated from the rapid rise in interest rates,” he said.

Canberra’s dwelling values dropped by 1.0 per cent during October and by 4.3 per cent over the last quarter.

However, annual dwelling values have risen by 1.0 per cent with a total return of 4.7 per cent.

CoreLogic’s Hedonic Home Value Index shows Canberra’s Covid trough to peak growth sitting at a 38.8 per cent increase, with October values recording a 5.4 per cent decline from the June 2022 price peak.

When it comes to rental values, instead of declining like housing, rents have risen on a national scale by 0.6 per cent in October.

Rental values for houses rose by 0.5 per cent while units saw a 1.1 per cent increase across the month.

In Canberra, house rent prices rose by 5.7 per cent and unit rent prices rose by 6.7 per cent.

The Canberra suburb with the highest 12-month value growth was Molonglo at 8.6 per cent, where houses sit at a median value of $771,081.

Gungahlin had the second highest rise at 2.4 per cent with a median value of $931,358, followed by South Canberra (2.3 per cent, $852,159), Weston Creek (2.1 per cent, $961,234), Belconnen (1.6 per cent, $851,228), and Tuggeranong (1.5 per cent, $839,715).

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