Recent media commentary tells us that we are seeing a decline in property prices after the record breaking increases of the last two years.
Is this accurate and what is the reality for home owners?
The media tells us that Newcastle house prices have dropped by 0.2% – the first drop since 2020.
Since the beginning of the pandemic in early 2020, house prices in Newcastle have risen around 30%. This month, we have seen a drop of 0.2%.
Let’s put that into perspective.
On an $800,000 house, that’s a decrease $1,600 against an increase of $180,000 over the past two years.
Let’s look at a case study:
That is a drop of $1,560 against an increase of $180,000 over the past two years.
What about prices in the nation as a whole?
CoreLogic and REA’s PropTrack both indicate that Australian home prices have fallen nationally for the first time in at least 20 months. They put the national monthly fall at around 0.1%.
Both show Sydney, Melbourne and Canberra are leading the falls, while Adelaide, Brisbane and some regional areas continued to post steep price rises.
In our own experience, here in Newcastle we aren’t seeing any decline. Demand is still high, many properties are still selling on the first weekend and are achieving very solid prices.