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CoreLogic’s recent Home Value Index has shown national dwelling values falling to 1.0 per cent in November, marking the seventh month of decline.

Aerial panorama from residential local lower north shore suburb Crows Nest.

Data shows that prices have dropped below the peak value in April 2022 by approximately 7 per cent or by $53,400.

After prices rose well over 28 per cent, the Australian housing market welcomes this swift decline. However, the last monthly drop is the smallest since June, with CoreLogic’s Tim Lawless saying the Sydney and Melbourne markets are mostly to blame.

“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 per cent…to a decline of -1.3 per cent in November. In July, Melbourne home values were down -1.5 per cent over the month, with the monthly decline almost halving last month to -0.8 per cent,” said Mr Lawless.

Other states across the nation are experiencing similar decelerates in decline as interest rates continue to rise.

“There is still the possibility that the pace of declines could reaccelerate, especially if the current rate hiking cycle persists longer than expected,” continued Mr Lawless. “Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire.”

Residential and commercial high rise apartment building in inner Melbourne suburb VIC Australia.

More prices under $1M

Although the swift declines have slowed, there are still plenty of positives, with many suburbs now demanding less than their once million dollar premium.

Mr Lawless said these million dollar exits are likely due to outer fringe suburbs that were showing median values marginally over the seven-figure threshold.

“A a small percentage drop in value has been enough to push values below $1 million.”

The more expensive suburbs are also experiences price drops; however, as Mr Lawless pointed out, these suburbs would require a much more significant price drop to warrant anything less than a million.

Out of the 836 exclusive million-dollar suburbs in Australia, 347 of these reside in Sydney and 117 in Melbourne.

Units on top

CoreLogic’s report found that every capital city apart from Hobart recorded a more resilient outcome for unit values opposed to houses, with units having fallen by approximately 0.6 per cent in comparison to a 1.2 per cent fall in houses.