{"id":41395,"date":"2023-01-04T16:08:34","date_gmt":"2023-01-04T03:08:34","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=41395"},"modified":"2023-01-04T16:09:49","modified_gmt":"2023-01-04T03:09:49","slug":"australia-house-prices-tumble-most-since-2008","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/australia-house-prices-tumble-most-since-2008\/","title":{"rendered":"Australia house prices tumble most since 2008"},"content":{"rendered":"

PHOTO: Australian house prices take a HIT lije they did in the Global Financial Crisis (GFC). FILE<\/strong><\/p>\n

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After the monthly rate of decline moderated between September and November, housing markets finished the year on a weaker note, with CoreLogic\u2019s national Home Value Index falling -1.1% in December, taking values -5.3% lower over the 2022 calendar year.<\/p>\n

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The re-acceleration in the downwards trend was mostly driven by a worsening in the monthly rate of decline across Melbourne (which lifted 40 basis points between November\u2019s -0.8%, and December\u2019s -1.2% fall), but declines also accelerated across Sydney, Adelaide, Darwin and Canberra month-on-month. On the flip side, the pace of falls eased across Brisbane and Hobart, while value movements in Perth remained slightly positive for the second consecutive month.<\/p>\n

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The -5.3% drop in housing values through 2022 marks the first time since 2018 where national home values fell over the calendar year.\u00a0<\/strong>The 12 months toDecember also mark the largest calendar year decline since 2008, when values were down -6.4% amid the Global Financial Crisis, and successive interest rate rises.<\/p>\n

Annual value falls were the most significant in Sydney (-12.1%) and Melbourne (-8.1%) where conditions peaked early in the year. Hobart (-6.9%), the ACT (-3.3%), and Brisbane (-1.1%) also recorded an annual drop in housing values, while three capitals saw values rise over the year: Adelaide (10.1%), Darwin (4.3%), and Perth (3.6%).<\/p>\n

CoreLogic\u2019s research director, Tim Lawless,<\/strong>\u00a0said this has been a year of contrasts, with housing values mostly rising through the first four months of the year, but falling sharply as the RBA commenced the fastest rate tightening cycle on record.<\/p>\n

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\u201cOur daily index series saw national home values peak on May 7, shortly after the cash rate moved off emergency lows. Since then, CoreLogic\u2019s national index has fallen -8.2%, following a dramatic 28.9% rise in values through the upswing.\u201d<\/p>\n

The upper quartile of the housing market led the downturn through 2022<\/strong>, with most capital city and broad \u2018rest-of-state\u2019 regions recording weaker performance across the upper quartile relative to the lower quartile and broad middle of the market.<\/p>\n

\u201cThe more expensive end of the market tends to lead the cycles, both through the upswing and the downturn.\u00a0\u00a0Importantly, recent months have seen some cities recording less of a performance gap between the broad value-based cohorts.\u00a0\u00a0Sydney is a good example, where upper quartile house values actually fell at a\u00a0slower<\/em>\u00a0pace than values across the lower quartile and broad middle of the market through the final quarter of the year,\u201d Mr Lawless said.<\/p>\n

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Although housing values across the combined regional areas of Australia were roughly unchanged over the year (+0.1%)<\/strong>, results were more mixed across the states.\u00a0\u00a0Annual falls across Regional NSW (-2.7%) and Regional Victoria (-1.3%) offset annual gains across the remaining regional markets.<\/p>\n

\u201cRegional SA has been the stand out for growth conditions over the past year, with values up 17.1% through 2022,\u201d Mr Lawless said. \u201cThe well-known Barossa wine region led the capital gains with a 23.0% rise in values over the calendar year.\u201d<\/p>\n

Despite the downturn across many areas of the country, housing values generally remain well above pre-COVID levels.\u00a0\u00a0<\/strong>Across the combined capital cities, dwelling values remained 11.7% above where they were at the onset of COVID (March 2020), while values across the combined regional markets are still up 32.2%.<\/p>\n

\u201cMelbourne is the only capital city where the current downwards trend is getting close to wiping out the entirety of COVID gains, with dwelling values only 1.5% above March 2020 levels,\u201d Mr Lawless said.<\/p>\n

\u201cThe relatively small difference between March 2020 and December 2022 levels can be attributed to a number of factors, including a larger drop in values during the early phase of COVID, a milder upswing through the growth cycle and the -8.3% drop since values peaked in February.\u201d<\/p>\n

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At the other end of the scale is Adelaide, where housing values remain 42.8% above pre-COVID levels.\u00a0\u00a0Adelaide dwelling values recorded a 44.7% gain through the upswing, and have held relatively firm since interest rates started to rise, down only -1.3% from the recent peak.<\/p>\n

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Download the complete December Home Value Index for graphs, charts and in-depth commentary and analysis on:<\/b><\/p>\n