Australian housing market update: August 2022
Australian dwelling values fell by -1.3% last month, marking the third month in a row where our national Home Value Index has fallen.
This most recent three month period coincides with three months of interest rate hikes, providing the first opportunity since 2010 to observe the impact of higher interest rates on housing market conditions. Nationally, values are down 2.0% since their April peak, however the downwards trend comes after national dwelling values surged 28.6% through the pandemic growth phase.
Five of the eight capital cities recorded a month-on-month decline in July, led by Sydney and Melbourne. Brisbane also fell for the first time since August 2020, while Canberra and Hobart were also down over the month.
Although Perth, Adelaide and Darwin remained in positive growth through July, each of these markets have recorded a slowdown in the pace of capital gains since the first interest rate hike in May.
Although the rate of growth in housing values was slowing well before interest rates started to rise, its abundantly clear markets have weakened quite sharply since the first rate rise on May 5. At a national level, the rate of decline is comparable with the onset of the global financial crisis in 2008, as well as the sharp downswing of the early 1980s. In Sydney, where the downturn has been particularly sharp, we are seeing the sharpest value falls in almost 40 years.
Regional markets have also weakened, with the combined regionals index recording the first monthly decline since August 2020. Dwelling values were down across most of the broad rest of state regions, but continued to trend higher in Regional SA and Regional WA.
Overall, regional markets are still outperforming their capital city counterparts, but this month’s figures show major regional centres are not immune to falling home values.
Find out the latest news for each capital city by clicking the link and watching the videos below or read the full: Housing Market Update August 2022 Transcript
- WATCH: NSW Housing Market Update | August 2022
- WATCH: VIC Housing Market Update | August 2022
- WATCH: QLD Housing Market Update | August 2022
- WATCH: WA Housing Market Update | August 2022
- WATCH: SA Housing Market Update | August 2022