While Australia's national house prices have hit record highs and cemented its reputation as the world's most expensive housing market, Melbourne has seen the biggest drop in house prices over the past year, making it the fourth most expensive property market in Australia.
(Image source: RealEstate)
According to RealEstate, the latest PropTrack house price index released today shows that Melbourne house prices have fallen by 0.07% over the past year, with the median house price falling to $803,000, lagging behind Sydney, Brisbane and Canberra.
Currently, house prices in Melbourne are 3.89% below their recent peak in March 2022. In addition, while national house prices have risen by 6.55% over the past year to a new record of $787,000, the monthly pace of growth is slowing (from 0.18% in June).
PropTrack economist Eleanor Creagh said: "Melbourne's price momentum is weaker as buyers have more choice relative to other markets, which has led to weaker selling conditions. ”
(Image source: RealEstate)
"At the same time, Victoria's population growth and construction rates are relatively balanced relative to other regions." Melbourne house prices have risen by 16.5 per cent since March 2020, while Victoria has risen by 40.1 per cent.
Creagh said Melbourne's house prices have fallen for three months in a row.
"Melbourne's recovery is stalling and continues to lag other markets," she said. ”
"The situation in Melbourne is very different from other markets, where there is more inventory and more choice for buyers, which leads to weaker selling conditions and less upward pressure on house prices." In addition, she said there was less investor activity in Victoria.
The data showed that while interest rates remained high, Australian house prices achieved 18 consecutive months of growth, and hit a record high in June.
(Image source: RealEstate)
In many markets, home prices have largely recovered to the losses they fell when interest rates were first raised, and continue to hit new highs. Unlike the boom during the pandemic, the capital city is now growing faster than the region, rising 6.91% and 5.61% respectively to $855,000 and $643,000 respectively. Despite being already Australia's most expensive housing market, Sydney has broken its own record, with the median house price rising 6.39% to $1.107 million over the past year.