Australia’s property market is currently at a three-speed pace as two capital cities hint at a peak in prices, three showing signs of a plateau, and three maintaining pace.
How is your local Aussie property market performing? Read more to learn whether it’s the right time to finance your dream home purchase.
For the past year, the national housing price reached a stunning 20.6% increase. However, research suggests that the current trends are losing steam, indicating a slowing price growth.
We’ve broken down different areas and sorted them by their growth pace, as some fare better than other cities.
Sydney & Melbourne: Possibly Peaked
As of February 2021, Melbourne and Sydney showed the steepest decline in price growth, with Melbourne at a standstill since September 2020 and Sydney at a 0.1% decrease.
Sydney recorded a 0.6% price growth in January 2020, while Melbourne scored 0.2%. That’s why it’s a surprise how much their prices plummeted in about 17 months.
This slowdown’s most potent driving force is the higher property supply than the demand. Customers have more houses to choose from, and the property industry is becoming a buyer’s market.
Melbourne and Sydney’s stock levels are higher than in the past 12 months at a 5.5% and 6.3% increase, respectively. Having more stocks decreases the buyer’s sense of urgency and gives them more power at the negotiation table.
Canberra, Darwin, Perth: Potential Throttling Soon
Perth, Darwin, and Canberra began showing indicators of a price slowdown last February, but we still cannot consider their growth rates as peak rates. However, we can expect them to throttle and peak sooner than later.
Canberra’s property values dropped from a 1.7% growth in January to a 0.4% increase in the next month. Darwin began at 0.5% to 0.4% in the same period, while Perth plummeted from 0.6% to 0.3%.
However, a bigger picture suggests that the three cities still perform strongly, with Canberra at 23.8% growth, Darwin at 12.3%, and Perth at 8.3%.
Adelaide, Brisbane, Hobart: Still at Full Steam
Three capital cities, Brisbane, Hobart, and Adelaide, still show few signs of slowing down. As of February, Adelaide stands firm at a 1.5% growth rate, Brisbane at 1.8%, and Hobart at 1.2%.
Regional markets also seem immune from slowdowns buffetting other capital cities, with six regions recording an average of 1.2% increase in monthly gains.
Zooming out quarterly, Brisbane and Adelaide recorded a 7.2% and 6.4% increase in quarterly growth, respectively. That is fueled by a shortage of property listings in these areas, having 20% lower annual stock and roughly 40% in a 5-year average.
Combining all rest-of-state markets will also result in an approximately 25% decrease in property stocks and a staggering 45% drop in a 5-year average.
Need Finance for Your 2022 Home Purchase?
With property prices rising and falling in different regions around the country, now’s the perfect time to look into your area’s property prices and consider your best financial path.
Our specialists at Plan A Mortgage will happily discuss your financial situation with you and evaluate your borrowing capacity to discover how you can finance your home purchase.
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