The slump in home prices continues
After surging by 28.6% from their pandemic lows early this year to record highs on the back of record low interest rates, home prices are continuing to plunge on the back of the fastest surge in interest rates since the early 1990s. Australian capital city average dwelling prices fell another 1.1% in November according to CoreLogic, making it their seventh monthly decline in a row. Including regional dwellings, which fell another 0.9%, national dwelling prices fell 1%. Perth and Darwin remain relatively resilient as they are still getting over their post mining boom slumps.
House prices are continuing to fall faster than unit prices, reflecting the much stronger boom in house prices and as unit prices are relatively supported by better affordability and tight rental markets.