HOUSE PRICES DROPPED IN AU - FIRST TIME IN 2 YEARS
House prices in Australia have decreased for the first time in two years, despite rising cost of living pressures.
The home value index of both CoreLogic and REA’s PropTrack fell 0.1% in May as losses in Australia’s two largest cities, Sydney and Melbourne, weighed on prices.
PropTrack has recorded it as the first time since the pandemic hit, while CoreLogic logged this as first decline since September 2020.
A much greater home price decrease for Sydney (-1%) and Melbourne (-0.7%) were reported by CoreLogic, pulling down the national average, while PropTrack projected both cities slid 0.3%.
According to CoreLogic, national home values increased 14% over the past year, but growth in price slowed down after a peak of 22.4% in January, as reported by 7news.com.au.
They also found Canberra house prices dropped for the first time in roughly three years.
As the news break, many were taking advantage of the hot market.
But it’s not all good news.
The recent 0.85% RBA increase in the official cash rate, which was the largest monthly rise in two decades, has left borrowers with less cash and higher repayments. Those who were just entering the property market were in the worst place, some of them facing the prospect that their loan might be worth more than their new house.
“Putting inflation pressure aside, the rise in the RBA cash rate will be translated into an increase in home mortgage interest rates,” RMIT property expert Peng Yew Wong said.
“Undoubtedly this will directly impact home borrowers as they will need to start paying a higher mortgage repayment.”
If you’re looking to enter the property market or refinancing your mortgage, talking to an expert like Will Bell Mortgage Broker will be of great value, especially at times like this.
We will be there assisting you all the way as you take advantage of the house price decrease.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent