Perth house prices are slowing down
National housing prices grew 22.1% last year, with two capital cities and one region not ready to slow down just. Can you guess where?
Recent CoreLogic data reveals prices in Sydney (+0.3%), Melbourne (-0.1%) and Perth (+0.4%) are slowing down.
However, Brisbane (+2.9%), Adelaide (+2.6%) and regional Queensland (+2.4%) are set to defy the slowdowns, with CoreLogic saying there’s “no evidence of their growth slowing just yet”.
In fact, the monthly rate of growth for each of these regions reached a new cyclical high.
“In Brisbane and Adelaide, housing affordability is less challenging, advertised stock levels remain remarkably low and demographic trends continue to support housing demand,” explains CoreLogic’s Research Director Tim Lawless.
Hobart (+1%), Canberra (+0.9%), and Darwin (+0.6%) meanwhile performed smack bang in the middle of the pack.
So what’s causing the slowdown in Perth?
Slower conditions across the Perth housing market may be more attributable to the disruption to interstate migration caused by extended closed state borders.
“This has had a negative impact on housing demand,” adds Mr Lawless.
So what can we expect in 2022?
For starters, housing stock is very low across regional Australia in particular, with advertised stock levels finishing the year 35.9% below the five-year average.
This compares to combined capital cities seeing stock 14.2% below the five-year average.
“It is likely regional markets, especially those with lifestyle appeal, will continue to benefit from higher demand as remote working policies are more normalised, and demand for holiday homes remains strong amid continued international border restrictions,” says Mr Lawless.
And while sellers held the upper hand at the negotiation table this year, buyers are expected to regain some leverage.
That’s because the average time properties spend on the market is beginning to increase, while auction clearance rates are trending down.
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