Brighter Buying

Market Update: Rate hikes see price growth begin to cool off

by Dan D'Silva, Property Consultant 14 July 2022

Depending on which property report you read, Brissie house prices rose or fell in June.

Confused? We’ll explain.

The data shows a cooling of rapid price growth since the Reserve Bank of Australia hiked up interest rates twice this year.

This doesn’t necessarily mean prices have gone backwards, just that the pace of growth has significantly slowed.

Data from CoreLogic showed that Brisbane prices grew 0.1 per cent in June, but data from REA Group’s Prop Track showed Brisbane prices dropped by 0.09 per cent, reports the ABC.

We think it’s fair to say that, on average, prices didn’t change much in June.

That’s a change from the rapid pace growth we have seen, with an increase in median values of 25.6 per cent over the 12 months to 30 June 2022.

A slowing market is no surprise, says CoreLogic Research Director Tim Lawless.

“We are seeing the higher cost of debt along with super-high inflation and lower confidence all feeding through to less housing demand in the marketplace,” he said.

“So it’s definitely increasing the level of decline and we are starting to see more and more cities quite clearly losing steam in the rate of growth in housing values, but we’ve also seen a fairly sharp reduction in the number of home sales as fewer people are active in the market, and an increase in listing numbers.”

Brisbane, however, isn’t yet seeing the same kind of drops that southern capital cities are and the lure of the 2032 Olympics and associated development is still likely to keep some optimism buoying local markets.

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