22 February, 2024
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Property downturn biggest on record

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The Reserve Bank’s aggressive interest rate hiking cycle has triggered the largest housing market decline on record.

The 8.4 per cent drop between May 7 2022 and January 2023 is the deepest peak-to-trough decline on CoreLogic’s records, surpassing the previous record-breaking fall between 2017 and 2019.

Sydney home values have led the downturn, falling 13 per cent from their highest point.

Brisbane prices have plummeted 10 per cent and Melbourne dwelling values have tanked 8.6 per cent from peak to trough.

The 300 basis points in rate hikes have shrunk the amount buyers can borrow and generally cooled buyer confidence.

High household indebtedness may have also increased the housing market’s sensitivity to interest rates, CoreLogic analysis found.

The market is unlikely to have bottomed out, with further cash rate increases in 2023 likely to keep driving prices lower.

– AAP

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