High prices and rates finally bite hard in Australia housing. Sellers who waited too long now face real losses.
House prices are falling in Sydney, Melbourne and Canberra as the market confronts the perfect storm of rising interest rates and the Albanese Government’s crackdown on landlords’ tax breaks.
The long-awaited June figures capture the first clear month since the Albanese Government announced major changes designed to boost housing affordability for first home buyers.
It’s good news for first home buyers, with the cost of a new home falling in Sydney and Melbourne, but it’s bad news for sellers.
Despite Treasury predictions that the reforms will only contribute to a two per cent reduction in house prices over the next few years, Cotality’s Home Value Index has found that prices fell by one per cent in Sydney and Melbourne in the month of June alone.
“The downward revision reflects a market that is changing rapidly,” said Cotality’s research director Tim Lawless.
“Most regions have seen values revise lower over recent months, with the largest downgrades occurring in Perth and Brisbane.“
“Higher cost-of-living pressures, deeply pessimistic sentiment and a further dampening of demand via property taxation changes announced in the federal budget are all contributing to weaker housing conditions.”