The Australian property market continues to fall, with new figures from the Australian Bureau of Statistics showing the total value fell by $162 billion in three months.
The total value of the Australian property market has now fallen below its peak of $10 trillion to $9.98 trillion.
This is the first quarterly fall in the total value of the Aussie property market since the June quarter of 2020.
The number of residential homes rose by 45,200 to 10,833,700, and the median price fell $18,900 to $921,500, this quarter.
In the June quarter of 2022, the total value of properties fell in NSW, Victoria, Tasmania and the Australian Capital Territory.
The total value of residential homes in NSW this quarter was $3.9 trillion, accounting for around 39.5 per cent of the total value of all properties in Australia.
How long will the downturn last?
Australian property prices suffered their fourth consecutive month of declines in August.
CoreLogic’s national Home Value Index (HVI) recorded a 1.6 per cent decline over the month - the largest month-on-month decline in 39 years.
Every capital city, apart from Darwin, is now in a housing downturn, with a similar scenario playing out across the rest-of-state regions, where only regional South Australia recorded an increase in housing values for the month.
CoreLogic research director Tim Lawless said he expected prices would continue to fall for the remainder of the year, and possibly into 2023.
“It’s hard to see housing prices stabilising until interest rates find a ceiling and consumer sentiment starts to improve,” he said.
“From current levels, interest rates are likely to increase by at least another 75 basis points and there is a good chance advertised stock levels will accumulate through the spring selling season, providing more choice for buyers and adding further downwards pressure on housing values.”