Australia’s Home Prices Suffer Largest Annual Decline Since 2008

According to CoreLogic, Australia’s housing market in 2022 experienced its largest annual decline since 2008, as sharp interest rate hikes weakened home buyers purchasing power and turned off would be investors.

CoreLogic’s Australian Home Value Index declined 5.3% in 2022. The nationwide decline in home values was led by a 12.1% drop in the bellwether market of Sydney, followed by an 8.1% decline in Melbourne. According to the report, Australian national values fell 1.1% in December alone.

CoreLogic notes that Australia’s $9.4 (A$) trillion housing market has declined 8% since reaching its peak in April 2022, after soaring 28.6% from a pandemic-induced trough.

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