Is the Australian love affair with property over? – Autumn Report
Welcome to our Autumn Market Report
Author: Manos Findikakis, CEO & Co founder of the Agents’Agency
The current very ‘hot topic’ of conversation amongst those of us in the property market is, what’s likely to happen over the next 12 months and is the Australian love affair with property over?
My thoughts, not necessarily.
Has the property market experienced a bumpy ride, especially in the last quarter? Absolutely.
However, property remains high on the want list for the everyday Australian.
According to the latest report from Corelogic, there are now 10.9 million dwellings across Australia, of which 500,550 of those changing ownership in the preceding 12 months. That means that for every 22 properties we drive by, one of sold in 2022!
So, what’s happened?
Since May 2022, we’ve seen the Reserve Bank of Australia lift the cash rate from a record low of .1 of a % to now at 3.35%.
This has significantly impacted the borrowing capacity of buyers, affecting mortgage repayments and the overall affordability of housing.
As a result, Median house prices have fallen across the major capitals:
Sydney has fallen by 14.7% to a median of $1.217million,
Melbourne fell by 11.2% to $897,000,
Brisbane fell by 8.6% to $767,000,
Hobart fell by 12.2% to $700,000 and
Canberra fell by 8.4% to $946,000.
Bucking the trends were Perth, Adelaide and Darwin who experienced increases of 2.6% with a new median of $587,000, 4.3% with a new Median of $694,000 and 3.1% with a new Median of $585,000 respectively.
Vacancy rates continue to be at record lows, resulting in a 10.1% increase to the average weekly rental across the nation.
What of the immediate future?
Sales volumes continue to trend lower, ranging from 20% to 40% fewer sales transactions in certain suburbs. Current market sentiment suggests that we will not see that abating until there is a leveling-off of interest rate hikes and a return of confidence from buyers and sellers.
This should not surprise or be cause for alarm for those wishing to sell, buy, invest, or rent in today’s market. This is all part of the property cycle.
Across our network, well presented and competitively priced homes continue to exceed seller expectations.
No matter what title you hold, buyer, seller, investor or rental occupier, the absolute key is to be well prepared and well informed, no matter what the market conditions are.
Before making any changes, reach out to one of our Agents’Agency network partners who will provide you with an in-depth analysis of your local property market so that you can make an informed decision moving forward.
Thank you for reading our report and from our entire team, we wish you all the very best on your property journey.
