Australia’s housing downturn enters its sixth month

This year’s aggressive interest rate hikes continue to eat into Aussie property prices, with almost all capital cities and rest-of-state regions recording a drop in housing values last month.

According to property research firm CoreLogic, national dwelling values dipped -1.2 per cent in October, marking the sixth consecutive month that prices have fallen. 

Some states have fared worse than others, with price drops easing in Sydney (-1.3%) and Melbourne (-0.8%) but picking up pace in Brisbane (-2.0%).

Certain rest-of-state regions have also been hit particularly hard, with declines greater than 1 per cent recorded in regional NSW (-1.7 per cent), regional Victoria (-1.4 per cent) and regional Queensland (-1.3 per cent).

According to CoreLogic research director Tim Lawless, it’s still too early to tell if the worst of the downturn is behind us.

“There is a genuine risk we could see the rate of decline re-accelerate as interest rates rise further and household balance sheets become more thinly stretched,” he said.

Capital city dwelling values (Source: CoreLogic)

CityMonthly changeQuarterly changeMedian value
Sydney-1.3%-5.3%$1,036,727
Melbourne-0.8%-3.1%$767,117
Brisbane-2.0%-5.4%$728,615
Adelaide-0.3%-0.6%$654,079
Perth-0.2%-0.7%$559,043
Hobart-1.1%-4.1%$696,334
Darwin-0.8%$507,081
Canberra-1.0%-1.0%$876,567

So far, however, the below average number of new properties going to market has helped moderate the downturn. Over October, new capital city listings were down -25.2 per cent compared to last year and almost -19 per cent below the previous five-year average.

“Although we are now seeing a late spring response to freshly advertised supply, every capital city except Darwin is recording a lower than average flow of new listings added to the market over the past four weeks,” Lawless said.

“The low number of freshly advertised properties is probably helping to contain price falls to some extent. So far we haven’t seen any evidence of panicked selling or forced sales.”

Prices have also been supported by a favourable labour market and the glut of savings borrowers had accumulated over the pandemic period. 

Many on fixed rate loans have also been unaffected by the latest batch of rate hikes.

Across Australia, unit values have been falling at a much slower pace than houses (-4.2 per cent compared to -7.2 per cent), which Lawless attributes to the relative affordability which still characterises the medium to high density sector.

“The gap between median house and unit values increased to record levels through the COVID upswing. With borrowing capacity being hit hard as interest rates rise, it’s likely more housing demand has been diverted towards more affordable sectors of the market,” he said.

For more information on property and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 22 June 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Details
  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

    Compare
    Details
  • The Better Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.14% p.a.

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

    Compare
    Details
  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.