The Sydney and Melbourne markets are turning down at rates we are yet to see here. The August CoreLogic home Value Index predicts market conditions are likely to worsen as interest rates surge through the remainder of the year.
 
In Sydney and Melbourne, total listings available are already 8 to 10% above five-year averages, however Brisbane, Adelaide and Perth are recording advertised supply levels that are more than 30% below the five-year average.
 
On the demand side Corelogic's estimate of National sales activity over the three months to July was down 16% lower relative to the same period in 2021. The National figures are heavily impacted by an estimated 39.8% drop in sales across Sydney and 26.3% fall in Melbourne sales relative to the same period year ago.
 
The latest interest rate hike of 0.5% can only push market activity down.
 
At First National we expect there will be a continuing decline in the local market both in terms of sales and prices but depending on how much more the reserve Bank intends to raise interest rates we hope to see falls much more modest than what is occurring in the Southern capitals. Once the market comes off it can take a considerable time for it to bounce back to it’s peak and historically depending on the overall state of the economy it can be anywhere from 12 months to 4 years.
 
We are very much in the hands of the Reserve Bank and the federal government.

by David Hamilton

Managing Director - 0419 763 924

Southern Markets Developing a Tailwind
palmbeachfn.com.au August 2022
First National Property Solutions
Ph: 07 5522 3100