National home values have seen the largest month-on-month drop recorded since 1983.
CoreLogic’s national Home Value Index showed a fourth consecutive month of decline in August. The 1.6 per cent drop over the month is the largest month-on-month dip in almost 20 years.
Brissie has not been immune, with values seeing an “acute” dip in August following a two-year growth streak.
“It was only two months ago that the Brisbane housing market peaked after recording a 42.7% boom in values,” said CoreLogic research director Tim Lawless.
“Over the past two months, the market has reversed sharply with values down -1.8% in August after a -0.8% drop in July.”
So will the 80s revival continue?
Probably, says Mr Lawless, who is tipping the downturn could continue into 2023.
“It’s hard to see housing prices stabilising until interest rates find a ceiling and consumer sentiment starts to improve,” he said.
“From current levels, interest rates are likely to increase by at least another 75 basis points and there is a good chance advertised stock levels will accumulate through the spring selling season, providing more choice for buyers and adding further downwards pressure on housing values.”
That’s good news for buyers looking for greater choice and less price pressure. And Brisbane sellers can still feel reassured of a healthy return. After two years of skyrocketing growth prices remain well above pre-pandemic levels.
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