Settlement values this year will more than double last year’s 2 per cent national decline as the downturn that began in Sydney spreads to other states and higher costs reduce buyers’ borrowing capacity, according to new data on the housing market from PEXA.
“Higher loan costs will cut housing transaction numbers this year as much as they did last year, but settlement values will more than double from the 2022 figure of 2 per cent,” Ms Toth toldThe downturn was also likely to mature as the declines that started in the NSW capital – which would now likely stabilise – widened to other cities, she said.“At the moment, it’s very much a Sydney story,” Ms Toth said. “We haven’t seen much of a fall yet in other markets.
NSW is leading the pack with the cycle. It’s got a bigger proportion of property volumes falling, then Victoria and then Queensland.ASX-listed PEXA’s data shows that lower-priced residential properties have been hit harder by the cycle of rising rates that started in May. This was most apparent in NSW, where markets in the south-western suburbs of Sydney were the first to suffer from higher rates.
“NSW is leading the pack with the cycle. It’s got a bigger proportion of property volumes falling across all those value points, then Victoria and then Queensland. It’s telling the story of the sequence of the cycle,” Ms Toth said.