SYDNEY- Australian home prices fell for a fifth straight month in September and, while the pace of losses slowed a little, further declines lie ahead with interest rates likely to rise again this week.
Figures from property consultant CoreLogic out on Monday showed prices nationally fell 1.4 percent in September, slightly under August’s 1.6 percent dive which had been the sharpest drop in 40 years.
Prices were still up 1.7 percent on a year earlier, but that was a long way from the growth peak of 21 percent seen late in 2021.
Yet there were signs the free fall was easing with prices in Sydney off 1.8 percent in September compared to a 2.3 percent fall the month before. Melbourne lost 1.1 percent and Brisbane 1.7 percent, while Adelaide and Perth saw only minor declines.
Overall, prices in the capital cities fell 1.4 percent, after a 1.6 percent drop in August, and were down 0.7 percent for the year.
The regions were also cooling with prices off 1.3 percent, ending a pandemic-driven bull run as people shifted to country living and greater space.
CoreLogic’s research director Tim Lawless said it was possible the initial shock of higher interest rates had passed through the system.
“However, if interest rates continue to rise as rapidly as they have since May, we could see the rate of decline in housing values accelerate once again,” he added.
The Reserve Bank of Australia (RBA) has lifted rates by 225 basis points to a seven-year high of 2.35 percent, and investors are wagering on a further rise to 2.85 percent when the bank’s board meets on Tuesday.
Markets imply rates could rise as far as 4.25 percent, though the RBA itself recently suggested the pace of increases was likely to slow in the next few months. — Reuters
