Friday 1 July 2022 05:57 AM Australian house prices will fall in Sydney, Melbourne, Brisbane with interest ... trends now
Australian house prices are set to plunge beyond Sydney and Melbourne with a new major city suffering the first monthly decline since 2020 amid expectations of more interest rate rises.
Brisbane has been Australia's best performing property market since the pandemic began, but that has now changed.
Queensland capital home prices, covering both houses and units, slipped by 0.09 per cent in June, marking the first monthly decline since April 2020, PropTrack data based on realestate.com.au sales figures showed.
Australia's two biggest cities were already in decline, with Sydney falling another 0.4 per cent last month as Melbourne slipped by 0.61 per cent.
But now Australia's three most populated cities - Sydney, Melbourne and Brisbane - are going backwards with the big banks expecting the Reserve Bank of Australia to hike the cash rate by another half a percentage point at its July 5 meeting.
Australian house prices are set to plunge beyond Sydney and Melbourne (Glen Iris auction pictured) with a new major city suffering the first monthly decline since 2020 amid expectations of more interest rate rises
A 0.5 percentage point RBA increase this month, following on from the increases in May and June, would see borrowers hit with the steepest rate rises in such a short time since late 1994.
This would also take the cash rate to a three-year high of 1.35 per cent from 0.85 per cent now.
When it came to house prices, separate data from CoreLogic showed declines or no growth in Sydney, Melbourne, Brisbane and Hobart in June.
Sydney had the biggest monthly fall of 1.8 per cent, taking the median house price back to $1,382,631.
Melbourne's mid-point house prices dropped by 1.3 per cent to $975,850.
Brisbane was flat at $892,133 while Hobart slipped by 0.2 per cent to $796,863.
But Adelaide was still going strong with median house prices rising by 1.3 per cent to $699,251.
Perth's equivalent value rose by 0.4 per cent to $585,114.
Regional house prices rose by just 0.1 per cent in June to $623,661 in a sign momentum is also slowing outside the capital cities.
On an annual basis, Brisbane and Adelaide have both had very strong median house price growth of 27.4 per cent during the last financial year.
Hobart had a strong increase of 13.6 per cent in the year to June 30 as Canberra's values rose by 15.8 per cent.
Brisbane (Story Bridge near New Farm pictured) since the pandemic began has been Australia's best performing property market but that has now changed. Queensland capital home prices slipped by 0.09 per cent in June, marking the first monthly decline since April 2020, PropTrack data based on realestate.com.au