$40 billion value wiped off housing market in six months

CoreLogic’s latest Property Market & Economic Update shows property values have fallen for three consecutive month to an a average of $1,018,770, down 2.3% from the peak, with annual growth rates slowing to 12.4%.

The sharp post-Covid upswing in values has now given way to a firm correction, and the falls already seen to date have been spread across most geographical areas and price brackets.

CoreLogic’s chief property economist Kelvin Davidson says it’s possible the national average property value will ultimately drop by 10-15% by the middle of next year, which broadly suggests we’re potentially halfway through this correction in both duration and scale.”

“There are multiple reasons contributing to a slowdown in values, these include more listings, a shift in pricing power towards buyers, a tighter mortgage lending environment, and sharply higher interest rates,” he says.