Sydney home values fell another 1.4 per cent in December and are now 12.7 per cent lower than their peak in January last year.
The drop follows a rise of 27.7 per cent during the pandemic property boom,fuelled by ultra-low interest rates and a desire for more spacious homes,but the market reversed as the cost of borrowing jumped.
Melbourne home values dropped 1.2 per cent in December and are 8.3 per cent lower than their peak. It follows Melbourne’s more modest 17.3 per cent gain while interest rates were at rock bottom.
Brisbane values lost 1.5 per cent in December and are now 9.4 per cent below their peak,while Perth values bucked the trend and rose 0.1 per cent last month,to hold 0.6 per cent below their peak.
CoreLogic research director Tim Lawless expects further falls based on assumptions the Reserve Bank,which lifted the cash rate from 0.1 per cent last April to 3.1 per cent now,will announce another two hikes this quarter and then stop.
“If we do see interest rates finding a ceiling at that stage,I think we will see housing markets stabilise soon after that,maybe not immediately,” he said.