Australian Housing Correction: Auction Clearance Rates Signal Marke...
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- Sydney and Melbourne lead the downturn with clearance rates dropping 20% since April.
- The RBA's aggressive tightening cycle has reduced maximum borrowing amounts by over 15%, forcing buyers to the sidelines.
- This demand destruction directly translates to falling prices and rising inventory.
Sydney and Melbourne lead the downturn with clearance rates dropping 20% since April. The RBA's aggressive tightening cycle has reduced maximum borrowing amounts by over 15%, forcing buyers to the sidelines. This demand destruction directly translates to falling prices and rising inventory.
CoreLogic data reveals dwelling values have already declined 2% nationally, with Sydney experiencing the sharpest falls. The correction mirrors the 2017-2019 downturn but is accelerating faster due to higher rate sensitivity. Analysts predict a 10-15% peak-to-trough decline if rates continue rising.
Sellers are now adjusting expectations, with price discounts widening as days on market increase. First-home buyers face the toughest conditions in decades, priced out by both higher rates and still-elevated prices. The market is rebalancing from a seller's to a buyer's domain, but affordability remains stretched.
Power Move: The RBA's tightening cycle is rewriting property market dynamics. Investors should prepare for sustained price declines as rate hikes continue. The next 12 months will separate strategic buyers from those caught in the falling knife.
This article was edited with AI assistance for readability. Read original here.
