CoreLogic’s daily dwelling values index for Brisbane, which also captures the Gold Coast, has now fallen 11.0% from its mid-June 2022 peak:
Brisbane (including Gold Coast) home values down 11% from peak.
When plotted against prior housing corrections (using CoreLogic’s monthly index), this is both the steepest and largest decline in Brisbane home values in records dating back to 1980:
Fastest and deepest house price correction on record.
The previous largest correction was -10.8% over 21 months, recorded between 2010 and 2012.
However, the current correction has exceeded this decline in only eight months.
That said, Brisbane dwelling values remain well above their pre-pandemic level.
Brisbane home values soared 45.3% between end-February 2020 and end-June 2022 and currently remain 28.9% above their pre-COVID level, based on the daily index:
Brisbane dwelling values still up strongly over pandemic.
Logically, the strong run-up in values over the pandemic should mean that Brisbane dwelling values will retrace sharply in response to the RBA’s aggressive interest rate hikes.
While this has certainly happened, the rate of decline has slowed over the past fortnight.
It will be interesting to see what happens if the RBA hikes again in March and April, alongside the fixed rate mortgage reset.
I can see Brisbane’s downtrend reasserting itself.
