We experienced a roller coaster ride in property values in 2022, didn’t we? The Sydney property market hit its peak value in February, dwelling values surging 27.9% from the COVID trough to peak. However, with the mix of successive cash rate hikes, strong inflation levels, and high household debt, buyers’ enthusiasm and borrowing capacities have definitely curtailed over the last couple of months, which resulted in the downtrend in our property market. According to CoreLogic, Sydney home values are down -9.5% since May, and -10.1% since peaking in February this year. This is contrary to what we saw last year where rates dropped and prices soared. However, despite the -10.1% decline so far, Sydney home values still have a way to go before wiping out the capital gains accrued over the recent growth cycle. Home values would need to fall a further -11.4% to get back to the levels seen prior to COVID-19. We’ve also started to see the Reserve Bank of Australia (RBA) ease the pace of interest rate increases which has helped to shift the tone of what we can expect for the rest of the year and next year. A LOOK BACK ON THE PAST YEAR AND THE OUTL +27.9% -10.1% -3% +12.9% Dwelling values COVID declared a global pandemic Housing values find a floor Sydney property market peaks Housing values peak 1,250,000 1,000,000 750,000 500,000 250,000 0 Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 Nov 2020 Jan 2021 Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Jan 2022 Mar 2022 May 2022 Jul 2022 Sep 2022
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