Canberra’s second most expensive real estate market in Australia after Sydney: CoreLogic | Canberra Times

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Canberra has the second most expensive property prices in the country, according to new data from CoreLogic, with values ​​in the capital rising almost 2 percent during the month of October. The median value of homes (houses and units) is now $ 864,909, making Canberra the second most expensive capital after Sydney, with a median price of $ 1,071,709. The numbers come as CoreLogic reports that price growth in both capitals and regional areas is slowing, likely due to a combination of affordability issues, an increase in new IPOs and recently adopted lending changes. Canberra’s median house price grew by 1.94 percent compared to October and 6.18 percent in the quarter. It is to be compared with 1.5 per cent and 4.6 per cent respectively across the country. In the 12 months to October 31, prices grew 25.52 percent, higher than any other capital city except Hobart, which had a 28.06 percent increase over the same period. House values ​​have risen far more than homes in the past 12 months, rising 29 percent from 13 percent. CoreLogic research director Tim Lawless said that across the country, monthly growth rates had declined significantly since March this year, in part due to the declining presence of first home buyers. “Housing prices continue to exceed wages by a ratio of about 12: 1. This is one of the reasons why first home buyers are becoming a gradually smaller share of housing demand,” Lawless said. A wave of new IPOs in the wake of lockdowns ending in more cities had probably also contributed to slower growth rates. “New listings have risen 47 percent since the most recent low in September, and housing-focused incentives such as HomeBuilder and stamp duty concessions have now expired,” he said. “By combining these factors with the subtle tightening of credit ratings set for November 1, it is highly likely that the housing market will continue to gradually lose momentum. The report said interest rates would be a key factor in housing market performance over “Although housing risks become more apparent, the short-term outlook is for further growth in values, albeit at a slower pace than seen over the previous 12 months,” it said. easing COVID-19- restrictions, the current low interest rates should continue to support demand along with tight advertised supply levels and improve consumer sentiment. AMP Capital’s chief economist Shane Oliver said prices could continue to rise for some time to come. level of housing for sale together with a resumption of the economic and labor market recovery after completion ngen of lockdowns point to further house prices ce rising ahead for some time yet. And the return of immigrants may provide a source of support at some point, “he said in a note.” But the storm clouds have begun to gather for the property boom, and we expect a further slowdown in price increases ahead of falls from later next. year. Inventories are on the rise, reflecting the end of lockdowns and high prices, affordability pricing more and more borrowers out of the market, a rotation in consumer spending back towards services as reopening takes place may reduce housing demand, higher interest rate service buffers and probably further macroprudential controls are likely to slow down borrowing, fixed mortgage rates are rising and the RBA is expected to start raising interest rates from the end of next year. “” As a result, we have revised our average home price forecast for 2022 in the capital down to 5 percent (from 7 percent ), and with prices likely to start falling from later next year, we expect a 5-10 per. cents fall in average prices in 2023, “he said. Our journalists are working hard to deliver local, up-to-date news to the community. Here’s how you can continue to access our trusted content t:

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