Home Price Slides Soften as Selling Season Begins

Home prices continued to fall across September, but the rate has steadied to the lowest since April’s initial decline.

The PropTrack Home Index for the month reported that prices nationally fell just 0.19 per cent as sellers went to market for the typically busy spring selling season.

As well, September activity was disrupted by a slew of public holidays.

The report said, however, that the moderation in falls did not herald the end of declines; interest rates were set to keep rising and expectations of a hike in early October would push prices lower throughout spring.

Home prices in Melbourne fell 0.29 per cent in September with the market seeing continued falls since early 2022.

Prices are now 2 per cent below their level in September 2021, and 5 per cent below their peak earlier in the year.

Falls were expected to continue in Melbourne over the coming months as higher interest rates constrained borrowing capacities, PropTrack said.

In Sydney, home prices fell 0.18 per cent for September to be down 3.7 per cent over the past year.

Prices in the NSW capital have fallen persistently since March this year—Sydney has recorded the greatest falls of any market in Australia.

“Higher interest rates are affecting higher-priced regions most, with Sydney, the most expensive region in the country, feeling these effects,” a PropTrack spokesperson said.

Home price index: September 2022

Home prices in Brisbane fell 0.29 per cent and are 2.2 per cent below the price peak recorded in April, 2022.

The slowdown in price growth in Brisbane had been rapid, PropTrack said.

“Prices are up 12 per cent over the past year after recording annual growth rates above 30 per cent in early 2022.

“However, prices remain 45 per cent higher than in March 2020.

“Strong migration flows to south-east Queensland are likely to prevent Brisbane experiencing the largest price falls over the next year.”

Perth was down 0.29 per cent and have been sliding lower in the second half of this year.

However, the rate of price falls has been slower than other capital cities, making Perth a relatively strong performing market. Prices have jumped 6.6 per cent over the past year.

Elsewhere, Darwin prices fell 0.37 per cent in September, the largest decline among capital city markets; prices fell for the second month in a row in Adelaide, down 0.16%; and the ACT was down 0.09 per cent.

Hobart prices increased slightly—the only capital city to do so—up 0.05 per cent.