Monthly home price growth eased almost everywhere across Australia in June as interest rates increased further, according to the PropTrack Home Price Index.
Australian home prices declined again in June by -0.25% month-on-month, but prices are still up 34% since March 2020.
Prices in Sydney and Melbourne continued to fall in June, at -0.4% and -0.61%, respectively, to be down more than 1.5% from the price peaks experienced earlier this year. Brisbane remained the strongest market over the year despite its prices dropping for the first time since April 2020.
Hobart (0.26%) and Adelaide (0.42%) were the strongest performing capitals over the month, both reaching new price peaks. Also seeing positive growth despite current market conditions were South Australia and Tasmania. Prices in Darwin (0.08%) also increased, while ACT experienced a fall.
Regional areas have continued to outperform the capitals, with prices up 50% since the start of the pandemic and sitting at a price peak. However, some regional markets declined in June, including regional NSW (-0.02%) and regional Victoria (-0.13%).
Over the past year, Brisbane and Adelaide were the standout performers among capitals when it comes to growth, while Queensland, SA, and Tasmania have led growth outside the capitals.
“The two-speed housing market remains evident,” said Paul Ryan, PropTrack economist and report author. “The biggest slowdowns have been in the most expensive markets of Sydney, Melbourne, and the ACT. Affordable, lifestyle regions of Brisbane, Adelaide, regional QLD, and Tasmania have continued to grow, but the slowdown is spreading to these markets, with Brisbane posting its first small fall since the pandemic began.”
Ryan noted that conditions in the housing market have slowed rapidly, marking the sharpest slowdown in prices in more than three decades.
“We expect continued price falls across the country until the uncertainty about the extent of interest rate increases is resolved – likely extending beyond 2022,” he said.
