Melbourne house prices fall for ninth straight month: PropTrack Home Price Index
The value of an average Melbourne home lost almost 6 per cent from its March peak last year to finish 2022 at about $800,000.
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The value of an average Melbourne home lost almost 6 per cent from its March peak last year to finish 2022 at about $800,000.
PropTrack’s December Home Price Index reveals the median price for all dwellings across the city now sits at $802,000 after another 0.34 per cent slip last month.
Melbourne’s median house price begins 2023 at $908,000 after losing 0.35 per cent last month and 5.27 per cent annually, while the unit figure is $611,000 after respective falls of 0.27 per cent in December and 4.5 per cent annually.
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PropTrack economist Anne Flaherty said prices were likely to continue falling over the first half of 2023, but the extent would largely depend on how much further interest rates rose.
“To date, the average buyer has seen their borrowing capacity slashed by around 25 per cent as a result of higher interest rates,” she said.
“If borrowing capacities are further restricted by additional rate rises this will place more downwards pressure on prices.”
Ms Flaherty said the rate of price falls had slowed, which was likely due to a reduction in the magnitude of interest rate rises since October.
“Despite the price falls we’ve seen so far, prices remain significantly higher compared to where they were sitting back in March 2020 just before the Reserve Bank first cut rates,” she said.
“In Greater Melbourne they are still 14 per cent higher, and in regional Victoria are still a whopping 41 per cent higher.
“While prices are forecast to see further declines, we don’t anticipate they will fall below their pre-Covid levels.”
Regional Victoria’s median dwelling price is down 3 per cent from its peak in April, now $595,000.
Its median house price is $617,000 and its median unit price, $432,000.
Melbourne’s median has fallen consistently for nine months since its March peak.
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