Regional home prices fell 0.34% in August and are down 1.2% over the quarter - the greatest quarterly fall seen since 2011, according to REA’s PropTrack Home Price Index.

Meanwhile, capital city prices fell 0.42% with Sydney the first and only market to see prices below their August 2021 levels. 

PropTrack Senior Economist Paul Ryan said rising interest rates are pushing property prices down.

“Higher interest rates continue to result in price falls across the country, which will persist throughout spring,” Mr Ryan said.

“We expect home prices to continue to fall across the country in 2022 and into 2023.

“Regional areas are now falling persistently but continue to be buffered by the affordability and lifestyle appeal that has led these markets to outperform over the past two years.”

ANZ economists Felicity Emmett and Adelaide Timbrell echoed a similar sentiment last week in their latest housing report.

“Our forecast for the cash rate to reach 3.35% equates to a reduction in borrowing capacity of nearly 30%,” Ms Emmett and Ms Timbrell said.

“This reduced ability to pay up will drive prices lower over coming months.”

Westpac economists expect national prices to decline 16% from peak to trough, closer to 18% for Sydney and Melbourne.

Property prices state-by-state breakdown for August

  • Sydney prices are down -0.49%
  • Melbourne prices declined by -0.47%
  • Brisbane recorded a -0.32% decrease
  • Adelaide saw its first price fall since 2019 with -0.12%
  • Perth saw an increase in property prices by a modest 0.04%
  • Darwin also recorded an increase of 0.14%
  • Hobart recorded a -0.56% decline
  • ACT prices are down -0.39%

Despite recent declines, property prices are still higher than pre-pandemic levels.

Regional areas remain up by almost 50% since March 2020 while capital city prices are up 26% over the same period. 

How does CoreLogic's property price data compare?

CoreLogic’s national Home Value Index (HVI) recorded a fourth consecutive month of decline in August, down -1.6%.

Regional dwelling values were down -1.5% compared with a -1.6% fall in values across the combined capital cities. 

According to the data, Sydney (-2.3%) and Brisbane (-1.8%) recorded the steepest declines in property prices while Darwin was the only capital to post an increase of 0.9%.

CoreLogic Research Director Tim Lawless expects the property downturn to continue through the remainder of the year, and possibly into 2023.

“It’s hard to see housing prices stabilising until interest rates find a ceiling and consumer sentiment starts to improve,” Mr Lawless said.

“From current levels, interest rates are likely to increase by another 75 basis points and there is a good chance advertised stock levels will accumulate through the spring selling season, providing more choice for buyers and adding further downwards pressure on housing values.”

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Expect Best via Pexels



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy