Dwelling prices nationally fell by 2.0% in the July quarter, as interest rate increases continue to dampen market sentiment.
Dwelling prices nationally fell by 2.0% in the July quarter, as interest rate increases continue to dampen market sentiment. These falls were led by our two biggest markets of Sydney and Melbourne, down 2.2% and 1.5% respectively in the month of July alone .
Inflation remains the RBA’s primary reason for lifting rates, with the Consumer Price Index (up 6.1% over the year to June ) rising much faster than the RBA’s target range of 2-3%. In theory, higher interest rates will slow consumer demand and help to reduce inflation, which is why the RBA has lifted the official cash rate from 0.10% to 1.85%.
We’ve seen the impact of this on the property market this quarter. But let’s not forget the incredible growth that came before it.
Capital city dwelling values rose by 25.5%, and regional areas by 41.1%, from the mid-2020 low to the April 2022 peak1. This growth was partly fuelled by all-time low interest rates set in response to COVID-19, so we’re now seeing the flipside of that – with rates getting back to more ‘normal’ levels.
City | Median dwelling price (house and units) | Capital growth last 12 months |
---|---|---|
Sydney | $1,087,376 | 1.6% |
Melbourne | $791,999 | 0.3% |
Brisbane | $781,850 | 22.1% |
Adelaide | $650,047 | 24.1% |
Perth | $560,020 | 5.5% |
Darwin | $506,860 | 5.3% |
Hobart | $723,066 | 10.1% |
Canberra | $925,973 | 12.1% |
Combined capitals | $819,880 | 5.4% |
Combined regional | $600,105 | 17.0% |