In November 2020, house prices across Australia declined by 1 percent. This marks the third consecutive month of declines, although the rate of decline has been shrinking month to month. So far, the biggest falls have been in Melbourne and Sydney, where values are down 3.2 percent and 2.7 percent respectively. However, despite the recent falls, home values across the country are still up an average of 17 percent since the start of the pandemic.
•In November 2020, nationally house prices dropped 1 percent and 3.2 percent over the year.
• The rate of decline has been shrinking month to months, with some variation between cities.
• Corelogic’s head of research says home values across the country are on average still up 17% since the start of the pandemic.
• As values decline more vendors are worried about forking out for an expensive marketing campaign and selling off Market instead.
• Property analyst Louis Christopher thinks a cash rate above four percent would be dangerous territory for heavily indebted mortgage borrowers and that properties in most Capital Cities will avoid Falls in 2023 with gains as high as nine percent in Sydney .
There are a number of factors driving the current state of the housing market. With interest rates at record lows, many people are taking advantage of the opportunity to refinance their mortgages or enter the property market for the first time. Some people are also selling up and moving to regional areas in search of a more affordable lifestyle. At the same time, COVID-19 has put a dampener on consumer confidence and reduced population growth, which has flow-on effects for housing demand.
What does this mean for those thinking of buying or selling a property?
For vendors worried about forking out for an expensive marketing campaign, it might be tempting to sell off-market instead. This involves quietly approaching buyers who are already on your radar and dealing directly with them without going through a real estate agent. While this might save you some money in the short-term, it’s important to remember that real estate agents exist for a reason – they’re experts in pricing and marketing properties, and they can help you maximise your sale price.
Of course, if you do decide to sell off-market, make sure you still get your property professionally valued before proceeding with any sale. And if you’re thinking of buying a property, remember that while prices might be falling at the moment, they’re still well above pre-pandemic levels. Property analyst Louis Christopher thinks a cash rate above four percent would be dangerous territory for heavily indebted mortgage borrowers and that properties in most capital cities will avoid falls in 2023 with gains as high as nine percent in Sydney .
Lower house prices might be good news for those looking to enter the property market or upgrade to a bigger home, but they could spell trouble for those who bought at the peak of the market or who are heavily indebted. If you’re thinking of buying or selling a property in the near future, it’s important to seek professional advice to ensure you get the best possible outcome.