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Australian Housing Market Downturn Deepens in June, Says Cotality

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Australian housing market worsened in June, recording the largest month-on-month decline in home values since Dec. 2022, as pessimistic sentiment grew amid rising cost-of-living pressures, Cotality said Wednesday.

Cotality's national Home Value Index fell 0.4% in June, dragged by a 3.2% fall in Sydney and a 2.6% slide in Melbourne, while mid-sized capitals also witnessed a sharp slowdown in growth.

Market conditions were already challenging, with affordability hurdles emerging even before interest rates rose by 75 basis points. Property tax changes announced in the federal budget are also deepening the downturn, the firm added.

The weaker housing market was also reflected in other indicators, including auction clearance rates, home sales estimates, and the number of properties listed for sale.

Auction clearance rates fell below 50%, and capital city sales for the three months ended June dropped 16.2% year-on-year, it added.

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