The loss of momentum in the pace of value decline was evident across most of the capital cities and broad rest-of-state regions, with a few exceptions, including Adelaide and Perth where housing values have only recently started to edge lower.

Although the downwards trend in housing values has decelerated, it’s probably too early to suggest the housing market has moved through the worst of the downturn.  Possibly we have seen the initial shock of a rapid rise in interest rates pass through the market and most borrowers and prospective home buyers have ‘priced in’ further rate hikes.  However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again.

The reduction in the rate of decline occurred just as other indicators recorded improvements.  Auction clearance rates trended upwards, albeit subtly, in September and consumer sentiment nudged a little higher as well on the back of strong labour market conditions. Unusually for this time of year we’ve also seen the flow of fresh listings continue to decrease during the first month of spring, helping to keep a lid on overall advertised supply levels.

After rising 25.5% over the recent growth cycle, housing values across the combined capitals index are now -5.5% below the recent peak, or in dollar terms, down approximately -$46,100.  The combined regionals index, which recorded stronger growth conditions through the upswing rising by almost 42%, peaked in June with values down -3.6% through to the end of September. This equates to a dollar value fall of approximately -$21,700 for the combined regional dwelling 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 October 2022 transcript.

• NSW Housing Market Update

• VIC Housing Market Update

• QLD Housing Market Update

• WA Housing Market Update

• SA Housing Market Update