Return to: Finance NewsAustralia’s Property Values Have Experienced The Most Significant Annual Drop Since 2008, With A Decrease Of 5.3%The data showed that December saw a decline of 1.1 per cent – making it the most significant drop since 2008, with an annual decrease of 5.3 per cent. CoreLogic, an international provider of property information, has provided a report indicating that values will decline by 5.3 per cent over the next two years – this marks the most significant yearly drop since 2008. When interest rates rose, and there was global economic turmoil, values dropped 6.4%. Sydney experienced the most extreme annual value fall of 12.1%, while Melbourne was not far behind with an 8.1% descent in house prices during the same period. Hobart, the Australian Capital Territory, and Brisbane have all experienced a yearly decrease in activity. Real estate values in three of Australia’s capital cities have witnessed substantial rises over the past year, with Adelaide gaining 10.1%, Darwin increasing by 4.3%, and Perth rising by 3.6%. The Covid-19 pandemic has had far-reaching effects, yet the housing market continues to defy expectations and remain 11.7% higher than it was at the beginning of 2020! This testifies to the strength of this vital sector despite difficult times. According to Tim Lawless, CoreLogic’s research director, 2022 has been a year full of contrasting events. Housing values rose significantly in the first four months; this quickly changed when the Reserve Bank of Australia (RBA) began its record-breaking rate-tightening cycle, which consequently caused housing prices to decrease drastically. “Our daily index series saw national home values peak on May 7, shortly after the cash rate moved off emergency lows. Since then, CoreLogic’s national index has fallen 8.2 per cent following a dramatic 28.9 per cent rise in values through the upswing,” Tim Lawless said. To stimulate the economy, Australia’s central bank reduced cash rate targets to 0.1 per cent in 2020. It has since initiated a series of consecutive rate hikes- pushing it as high as 3.1 per cent – the highest level in a decade. The current Consumer Price Index stands at 7.3%, but with further expected increases, RBA is optimistic that inflation can be returned to its 2-3% ra ... News Release: Australia’s Property Values Have Experienced The Most Significant Annual Drop Since 2008, With A Decrease Of 5.3% Submitted on: January 18, 2023 10:10:15 AM Submitted by: Bizfeed On behalf of: www.bizfeed.com |