Brighter Buying

Market update: Record falls can’t wipe out pandemic gains

by Tiana Toledo, Sales Associate 9 February 2023

Recent headlines have shouted that Brisbane has set a new record for price drops.

Data from January shows home values dropped 10.9 per cent from the peak in June 2022 – the largest fall on record, according to the CoreLogic Daily Home Value Index (HVI).

But all is not lost. In fact, not much is lost at all when you consider how far prices rose to the peak.

“The record fall in Brisbane home values has not made much of a dent in the gains made during the upswing. The fall in the Brisbane daily HVI follows an upswing of 43.5% between August 2020 and 19 June 2022, which was the fastest trajectory of rising values on record. This leaves home values across Brisbane 27.9% higher than at the previous trough in August 2020,” says CoreLogic Head of Research Eliza Owen.

In dollar terms, the median dwelling value in Brisbane has increased from $506,553 at the onset of COVID-19 in March 2020, to $707,658 at the end of 2022.

So will the rollercoaster continue?

Crystal ball gazing is a difficult business, however some early reports this year signal that we may be entering a more stable period.

The latest PropTrack report shows Brisbane house prices were pretty much static in January, with a fall of 0.07 per cent.

The Reserve Bank kicked off 2023 by upping the cash rate by another 25 basis points at their first meeting on Tuesday, bringing it to a scorching 3.35% – the highest it’s been in over a decade.

Most commentators are continuing to watch Reserve Bank rate rises and are tipping a more stable property price environment when interest rates level out too.

Want to buy in a market that’s had a 10 per cent discount since its peak? View our current listings for sale.

Thinking of cashing in your pandemic gains? Book a valuation or talk to us about selling.