November 2022 Market Update

Homeowners are tightening their belts after a seventh consecutive cash rate increase to curb stubbornly high inflation. Could rate rises cause property values to slide 20 per cent?

Home values are predicted to decline by as much as 20 per cent, losing much of the gains made during the pandemic. However, there are still suburbs in every city presenting opportunities for buyers.

In the market to buy? Make sure you speak to Fornaro about a pre-approval to help you move quickly on your preferred property before the end of the year.

Home value movements

Higher interest rates and falling housing affordability is having an impact on house prices which are tipped to fall by a whopping 20 per cent in Sydney in the next year, a new forecast by Me Bank has found.

But some industry insiders are citing the fall as a ‘correction’ that tends to happen after a period of sharp growth.

And we have seen stellar growth, up to 30 per cent, over the pandemic.

Melbourne and Canberra are predicted to see price slumps of 15 per cent. Brisbane house prices could also drop as much as 15 per cent – nearly double what was previously predicted.

Here’s a snapshot of home values by state.