politics

Some regions still climbing as nation sees record drop in house prices

Some regions still climbing as nation sees record drop in house prices

Home buyers moving from the city to the country have kept regional housing markets high, but it could be coming to an end.

Quarterly data show the median house price has gone down in every capital city for the first time in 15 years.

The trend varies outside the capital cities, with Vic, NT, and SA all seeing regional prices rise.

A real estate agent in regional SA, where the increases have been steepest, has seen inquiries plummet in the last few weeks.

Australia's last holdout against a cooling house market is still on the way up, but years of rapid growth are expected to come to an end soon.

Earlier this year Helen Burns sold her "little cottage" in the Adelaide Hills for about $800,000, venturing 350 kilometres south-east to a new home in the small town of Penola in South Australia's South East.

The move was motivated by family factors but deemed a "no-brainer" when she crunched the numbers.

"[I] pretty much tripled the land size and doubled the house size for only $20,000 [more]," Ms Burns said.

This kind of calculation saw regional prices rise in Victoria, the Northern Territory and South Australia, with regional SA the steepest of the bunch.

The latest Domain property report showed prices outside of Adelaide rose 19 per cent in the past 12 months, with the median price at $595,000.

A report from Proptrack earlier this year outlined how regional SA house prices had almost doubled in the past five years.

Naracoorte real estate agent Margot Shortt described the past year as "nothing short of crazy" with many people getting into the market thinking it would keep rising.

While prices have continued to rise, Domain's data only runs to September 30; and two days earlier, the RBA lifted interest rates to a 15-year high.

Ms Shortt said this, along with broader economic factors, meant calls and messages to the agency had "absolutely fallen off a cliff".

"We have seen probably a 99 per cent decline in enquiries."

She said it was hard to actually know if the local market was dropping given the lack of recent sales.

"Is the market terrible? We haven't really seen too many transactions transpire so we can't compare," she said.

The latest Domain property report showed Australia's housing market fell 4.7 per cent, the steepest quarterly drop on record.

Every capital city has seen the median house price head south for the first time in 15 years.

But outside the capitals, data were more varied.

Adelaide University housing economist Chris Leishman said Sydney and Melbourne were generally the first to witness shifts and Adelaide was "always a fairly slower responder".

He said you would expect regional SA to be the last housing market still growing as the rest of the country started to plateau or drop.

"Look at any state and compare it to its metropolitan city … the regional areas tend to perform strongly later in the cycle," he said.

Professor Leishman said Australia is at the tail end of one of the longest and most pronounced housing booms ever seen.

Across Australia, he failed to see strong growth over the next couple of years and believed there "has to be a correction".

He expected six to 12 months of prices going down further, before starting to rise again in the long term.

  • nation
  • record
  • drop
  • house
  • region
  • price
  • home
  • buyer

Summaries and tags are generated automatically. Stay informed with VidiaNews.

Related news

Photos from ‘Democracy Is Not for Sale’ dialogue in Oti Region
politics

Photos from ‘Democracy Is Not for Sale’ dialogue in Oti Region

JoyNews’ Democracy Is Not for Sale dialogue took place in Dambai in the Oti Region, bringing together stakeholders and members of the public to examine the growing influence of money in Ghana’s electoral process. The engagement forms part of JoyNews’ broader effort to promote public awareness and encourage national conversations on electoral accountability, transparency in political financing and the responsibilities of citizens in safeguarding Ghana’s democracy.

Read →
NIS moves to prevent foreign interference in 2027 elections
politics

NIS moves to prevent foreign interference in 2027 elections

The NIS, the Department of State Services (DSS), the Border Communities Development Agency (BCDA) and other stakeholders convened at a sensitisation workshop at the NIS headquarters on Friday in Abuja. Speaking at the workshop, the NIS Comptroller-General, Mrs Kemi Nandap, said that the successful conduct of the upcoming elections required institutional cooperation from all security stakeholders.

Read →
Andy Burnham says UK has ‘lost more than we gained’ through Brexit
politics

Andy Burnham says UK has ‘lost more than we gained’ through Brexit

Andy Burnham has said the UK has “lost more than we gained” since leaving the EU, the prime minister’s latest in a string of comments criticising Brexit. Outlining his desire to form closer ties with Brussels, Burnham accused the Conservative party of having “burned all our bridges” with the bloc after Brexit and said a new deal he hopes to secure with the EU next week will “get food prices down” and put more money in the pockets of British exporters.

Read →