Australia’s housing market has been making headlines lately. If you’ve been following the news, you have probably seen some headlines like these ones “Australia records largest drop in house and unit values”, “House price falls”, “Australia’s housing prices slump as rental values skyrocket”.
While it’s not untrue that property prices have slowed down, a recent report from CoreLogic shows that the reality is more nuanced than the headlines suggest.
The leading provider of data has released a new report which analysed how the housing market has performed in the three years since COVID was declared a global pandemic.
The report showed that some metrics were heading toward pre-pandemic norms, while other parts of the housing market have seen lasting changes.
While the market has slowed down since the property boom when national dwelling values rose 28.6% from September 2020 to April 2022, national housing values are still 14.8% higher than where they were in March 2020.
A varied housing market
That said, it’s important to note that the performance of Australia’s housing market is varied.
Adelaide houses, for example, have come out on top across the capital cities, with values sitting 43.7% higher than at the end of March 2020. This is the equivalent of a $211,097 increase in the median house value across the city. Regional dwelling values are 30.7% higher overall than they were at the start of the pandemic. Sydney house values are 7.7 per cent higher whereas Melbourne has given up almost all of its gains to sit just 0.03% higher.
The market has shown signs of stabilising in recent weeks, but CoreLogic’s head of Australian research, Eliza Owen, said it was too early to call the bottom of the market amid ongoing interest rate rises.
So, there you have it. While the headlines may have you believe that the Australian property market is on a downward spiral, the reality is a little more nuanced. While some areas are still experiencing significant growth, others are struggling to maintain their gains.
It’s clear that the Australian housing market is a complex landscape that requires careful consideration and due diligence before making any major financial decisions. At UFinancial, we understand the challenges of navigating this nuanced market and are committed to helping Aussies achieve financial success. With our comprehensive and diversified financial services, we provide the support you need to make informed decisions. Book a free chat today.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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