Housing values are currently falling at a rate that they haven’t in over 40 years. This is now occurring in all Australian capital cities except for Darwin. Such fast falling rates have not been seen since the 1980s.
Although a sudden growth period took the housing values up by 29%, they are now falling. The values reached their peak in April. Then, in the whole country, they decreased by 3.5%. The CoreLogic hasn’t seen something like this since the recession in the early 1980s.
In August, prices in Australia went down by 1.6%. During this month, each capital city apart from Darwin saw a drop in value.
The city experiencing the highest value drop was Sydney, which saw a rate of 2.3% decline. It was followed by Brisbane, which dropped by 1.8%. Next, we have Hobart and Canberra, which had values declining by 1.7%. Melbourne went down by 1.2%.
Meanwhile, cities like Perth and Adelaide saw smaller drops in value. Perth had a 0.2% value drop, and Adelaide had a fall of 0.1%. The majority of the regional areas experienced this big fall.
Regional South Australia was the only one that saw a value growth.
Did This Value Decrease Make Houses Easier to Reach?
People would expect houses to be more affordable now after such a massive drop in value. Unfortunately, the cost of living is still increasing, leading to potential house buyers having a harder time saving money to purchase a forever home.
There were six different decline and growth cycles for housing prices that Australia experienced during the last 30 years. Dwelling values went up by 382% in the whole country over the last 30 years. However, there is less time required to save for deposits due to the drop in property prices in the many capital cities.