Property market slump deeper than predicted

CoreLogic chief property economist Kelvin Davidson says for the calendar year, total sales volumes are estimated to be about 67,000, the lowest since 2010, and the third lowest figure in the past three decades.

He says as mortgage rates climb ever-higher and with the mindset/psychology in the housing market also having turned negative, property values have experienced a bigger downturn than was anticipated.

To date, CoreLogic has measured a fall of around -10% from the peak for national average values with the expectation of potentially another -10% decline next year. “For context, the GFC saw a final peak to trough fall of -10%,” Davidson says.

The seminal publication, which sums up the country’s property performance and provides a market outlook, confirms this year was a “buyer’s market”.