Home values fall for seventh consecutive month as interest rates dent demand
Summary
Australian home values fell for a seventh straight month, dropping 1.4% in the capital cities in October. Cotality says higher mortgage rates are weakening demand, with declines spreading to mid-sized capitals; rents remain more than 50% higher than six years ago despite easing rental pressure.Key Facts
- Capital-city home values have fallen 8.1% since March, according to Cotality.
- Brisbane and Perth led capital-city declines in October.
- Cotality said nearly every suburb in Brisbane, Perth and Adelaide recorded lower values over the past three months.
- The article reports four interest rate increases this year, with a fifth widely expected at the Reserve Bank’s Tuesday decision.
- Morgan Stanley forecasts property price falls of up to 15% from peak to trough.
- Home prices over the past decade nearly doubled or more in Adelaide, Brisbane, Perth and Hobart, while Melbourne prices rose just over 20%.
- National rental vacancy rates have risen and rent growth has slowed, but rents remain more than 50% higher than six years ago.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
