Home prices plummet and values ​​fall the most in 39 years

The decline in Australia’s property market has spread to all capital cities and most regional areas, with a leading index showing the biggest monthly decline in nearly four decades.

CoreLogic’s home value index fell 1.6 percent in August, the biggest national monthly drop since 1983.

A separate index, using a different methodology, from rival data provider PropTrack saw prices fall a much smaller 0.4% last month, but both indexes agree that nearly every city and region in Australia is now in a real estate recession.

CoreLogic data shows declines in all capitals except for Darwin, which posted a 0.9 percent rise in August.

“It’s just a sign of how extraordinary interest rate increases have been, as well as deterring buyers due to higher cost of living and lower consumer confidence,” CoreLogic’s Eliza Owen told The Business.

“It’s also important to remember that this was an extremely large increase in property values ​​that increased by approximately 28 percent over the course of two years.”

The biggest falls continued to occur in Sydney, where prices fell 2.3% last month, while Brisbane (-1.8%), Hobart (-1.7%) and Canberra (-1.7%) had the next biggest drops.

Prices in Perth (-0.2 percent) and Adelaide (-0.1 percent) fell only slightly, while Melbourne posted a further 1.2 percent drop.

region reversal

Regional areas have also started to slide quite sharply, with CoreLogic posting a 1.5 percent drop outside of capitals.

“That is much stronger than what we have seen in previous months and is being led by some of the hottest lifestyle areas in the regions, such as Newcastle and the Richmond-Tweed area,” said Ms Owen.

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