CoreLogic’s daily dwelling values index recorded a 0.05% rise in the week ended 14 April:
As shown below, both Sydney (-0.11%) and Melbourne (-0.03%) recorded value falls, whereas solid-to-strong rises were recorded across the other major capitals:
So far in April, Sydney’s and Melbourne’s dwelling values have fallen, whereas the other major capitals have risen strongly:
Quarterly dwelling value growth shows a similar trend, with Sydney and Melbourne again recording value falls while the other major capitals have risen:
The next chart plots quarterly dwelling value growth as a time series, with Sydney and Melbourne plunging into the red:
The primary reason is because listings volumes have risen in Sydney and Melbourne, whereas they have shrunk elsewhere:
Given Sydney and Melbourne are the most expensive capital cities in the nation, they will be more sensitive to interest rate rises.
Home owners in both cities should brace for substantial value falls as mortgage rates ratchet higher.
