In a recent mortgage industry publication, information was sourced from the online electronic home settlement system known as PEXA. They disclosed that the recent run of property sales has come to a close.
NSW led the decline in Australia’s residential sales settlements in both property sales volume and aggregate value, as shown in PEXA’s Property Insights Report for the September quarter. The report noted a marked decline quarter-on-quarter and it found that Australia’s most populated state recorded 41,357 residential sales settlements worth an aggregate value of $47.7 billion. These figures marked a decline of 13 per cent in sales and a 16.8 per cent decline in value quarter-on-quarter. PEXA explained that these figures indicate that NSW was experiencing “…a faster market slowdown than any other region”Queensland’s property market topped the nation for total volume for the quarter, recording 46,621 residential sale settlements, recording a drop of 10.2 per cent quarter-on-quarter and an aggregate value of $32.2 billion (a decline of 11.8 per cent quarter-on-quarter).Victoria saw an 11.8 per cent drop on sales settlements during the same period (44,255) and a drop in value of 10.2 per cent at $37.8 billion.
So reading into the above , we are finally seeing the impact of rising interest rates which commenced from May 2022. These figures are of course relating to residential sales settlements , and not inclusive of residential home loan refinance settlements. However, they too have declined in value and number. That’s probably more to do with the ‘mortgage prisoner’ issue which I have mentioned in previous articles. This decline in settlements has to then flow through to a balancing of supply and demand conditions that we havn’t seen in the property market for some years.
The PEXA information is also supported by Core Logic August 2022 Mid North Coast annual dwelling sales figure (5672) , which was 19.4% lower than the prior year.
Regardless whether you are a buyer or seller, it’s important to know that property market conditions are now probably viewed as being slower but more stable.
If you have any questions please contact our office on 02 6583 2211 and talk to Michael.