Regional housing markets are down year-on-year on account of excessive rates of interest and shifting migration patterns.
CoreLogic’s newest regional market replace, launched on Tuesday, examined Australia’s largest non-capital metropolis areas, discovering housing values declined in 18 of the 25 areas.
The largest drops have been within the NSW areas of Richmond-Tweed (20.4 per cent) and Southern Highlands and Shoalhaven (15 per cent).
Victoria’s Ballarat and Geelong additionally noticed double-digit declines, with home costs falling 11.2 per cent and 10.4 per cent respectively within the 12 months to July.
“Year-on-year growth was hard to find across regional Australia in the past 12 months,” CoreLogic’s analysis head Eliza Owen mentioned.
“The markets that saw an increase were largely more affordable and were more rural.”
Central Queensland homes noticed the biggest home worth rise, rising 2.7 per cent, whereas the neighbouring Mackay-Isaac-Whitsunday area additionally noticed a 1.2 per cent improve.
Interest price rises and post-COVID migration applications have been contributing to the distinction in costs throughout the areas, Ms Owen mentioned.
“Targeted migration programs tend to focus on parts of regional Australia as a pathway to permanent residence,” she mentioned.
“Some of the more rural, regional parts of the country may have seen sustained housing demand as international travel restrictions have lifted through 2022.”
Overall regional home values are 5.6 per cent decrease than the identical time final 12 months, whereas gross sales volumes are additionally down 21.3 per cent.
Higher-value markets have possible seen a poorer efficiency prior to now 12 months, Ms Owens mentioned.
“But the good news for sellers is that these markets appear to have passed through the depths of the downswing,” she mentioned.
“Popular high-end markets could start to stabilise as mortgage rates move closer to a peak and capital city markets become more expensive.”
Source: www.perthnow.com.au
