Home prices fall for the first time in almost two years as rising interest rates bite

Australian house prices have fallen nationwide for the first time in at least 20 months, according to two leading monthly indices.

Both indices — by CoreLogic and PropTrack by REA — put the national monthly decline at about 0.1 percent.

CoreLogic is recording this as its first monthly decline since September 2020, while PropTrack has placed it as its first decline since the start of the COVID-19 pandemic.

CoreLogic reported much larger falls in home prices in Sydney (-1%) and Melbourne (-0.7%), dragging down the national average, while PropTrack estimated both cities were down 0.3%.

Both indices also noted that prices in Canberra fell last month for the first time in about three years.

Competing data providers also noted that price growth remained highest in Adelaide, Brisbane and some regional areas.

CoreLogic Home Value Index, May 2022
CoreLogic’s Home Value Index shows Australia’s most expensive cities, Sydney, Canberra and Melbourne, are leading the decline.(Scope of delivery: CoreLogic)

“A clear two-speed housing market has emerged,” said PropTrack’s Paul Ryan.

Alternating trees remains attractive

Looking for more space to raise their three children, Natasha Di Sano and her husband Daniel moved their family to a new home last month.

Natasha Di Sano sits on her steps.
Natasha Di Sano says moving her family of five and their dog Akira further away from Sydney has allowed them to build a better way of life.(ABC News: Dan Irvine)

“My husband came to me with the idea,” Ms. Di Sano said.

“It has been for us to build a better life for my husband and I and our three children, to give them more opportunity to be on bigger land, to feel free to be themselves and to give us the opportunity, just to be live a different lifestyle, not so much the fast pace.”

While not technically a regional move, they sold their 5,000-square-foot home in Sydney’s outer north-west suburb of Kellyville Ridge, about 40 kilometers from the CBD, and moved about twice as far from the city to Kurrajong. where her three children now have two and a half acres to roam on.

Exterior of a house in Sydney's far north-west.
The Di Sano family’s new home sits on 20 times the land of their previous home, with a mortgage of roughly the same amount.(ABC News: Dan Irvine)

In addition to the additional land and 16 chickens, her new home has additional bedrooms and living areas as well as a granny flat.

“We haven’t reduced the loan as much as I think we’d like, it’s pretty much like we did a swap,” she said.

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