The local market has taken its foot off the price fall accelerator with the rate of price declines levelling out in November, according to the latest CoreLogic Home Value Index.
Brisbane values fell 2% last month, but values still remain above levels this time last year.
Prices dropped in Sydney and Melbourne too but at a smaller rate than before.
So is that it? Are we done with the down-down price movement?
It’s too soon to say. Most likely, as interest rates keep rising, we’ll continue to see softer price conditions.
“Potentially we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls,” Core Logic reports.
“However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.
“There is still the possibility that the pace of declines could reaccelerate, especially if the current rate hiking cycle persists longer than expected.”
So that means all eyes are now on 2023 and crystal ball commentators are out in full force.
In recent media coverage we’ve seen most commentators tip interest rates will continue to rise into 2023 before levelling out – and even one prediction that they’ll begin to drop again by the end of next year.
If there’s one thing that annual forecasts have told us it’s that you can’t really predict the future.
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