Property prices are under the microscope right now because the market is anxious to gauge the impact of interest rate rises. But you can definitely overdo the analysis.
National averages of residential property for detached houses and units have their use, but they’re not definitive for your personal situation.
Australia consists of thousands of micro-markets, each with different characteristics and levels of demand.
So, if you’re thinking of buying or selling in the current environment, or even stalling those plans, you’ll be best served by talking to experienced real estate agents in your area and researching local price trends rather than relying on national numbers.
As an experienced agency in your area, we appreciate that the high-level market view does give you a sense of the general mood.
So, it’s been interesting to note the latest Home Value Index from CoreLogic. The data covers the June 2022 quarter and reflects buyer behaviour since the Reserve Bank of Australia confirmed that it anticipated gradual rate increases through to 2023.
Below, we’ve listed some of the key takeaways. But if you want to know what this means for your situation, please contact us. We can discuss local price movements, buyer participation and marketing strategies that can maximise the value of your home.
National picture
Across the country, values declined only slightly, by 0.6% in June. Over the entire June quarter, prices edged downward by just 0.2%.
Capital cities
Sydney and Melbourne dipped most over the quarter, registering -2.8% and -1.8%, respectively. Adelaide is the only capital city in growth mode, up 1.3%.
Property type
Unit prices are holding better than houses. Using the two largest cities to illustrate the point: Sydney houses dropped -3% but only -2.1% for units in the June quarter. For Melbourne, the numbers were -2.4% and just -0.5%.
Perhaps more significantly, homes are not selling as quickly as the market normalises its behaviour after a boom that delivered a 35% plus increase in average home values over the past two years.
Residential property deals are down 15.1% nationally, reflecting more choice for the buyer and a slightly more challenging negotiating environment for the seller.
However, according to CoreLogic, we are still an incredible 13% above the five-year average for transactions completed in a quarter. This illustrates that real estate still offers great opportunities, especially for upsizers and first-time buyers.
At our agency, we believe that if you have plans to buy and sell, you should remain diligent in your research of the local market and in your desire to find a wonderful new home. Use national and city averages as purely an indication of sentiment.
If you have questions or wish to discuss your situation in greater detail, please do not hesitate to talk with one of our agents.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.