Property headlines are everywhere at the moment, and most of them aren’t exactly cheerful. If you’re thinking about buying, selling or just wondering what your home is worth, it’s easy to feel a bit rattled. So let’s take a calm look at what’s happening nationally, what’s happening here in Canberra, and what it means for your next move.
What the headlines are saying
The national picture first. According to the Cotality Home Value Index, Australian property values fell 1.1% in September, the sixth monthly fall in a row. Values are now around 5.2% below their March peak.
The reasons are fairly clear: four rate rises this year (at the time of those figures), affordability constraints, elevated living costs, tighter tax rules for investors, and weaker sentiment.
So, what’s happening in Canberra?
Here’s the honest answer: Canberra hasn’t sat this one out.
Cotality’s figures show Canberra home values also fell 1.1% in September, and they’re down 3.2% over the past three months and 1.6% over the year. The typical Canberra home is now valued at around $862,000 (roughly $1 million for a house and $582,000 for a unit).
Cotality also reported:
- Canberra values are 6.2% below their May 2022 peak, and up just 3.1% over the last five years.
- Over the year to September, Weston Creek (+1.3%) and Tuggeranong (+0.6%) home values actually edged higher, while North Canberra fell 4.4%.
- Auctions clearance rates are cooling: for the week ending 31 October, 49.7% of Canberra auctions sold (compared with 67% in the same week last year) and there were fewer auctions overall.
What we’re hearing on the ground
Here’s what we’re actually seeing day to day…
There are still buyers out there, including first home buyers, with a pre-approval in hand and ready to go. What’s missing seems to be the stock… i.e. there doesn’t seem to be enough of the type of properties that buyers are looking for (according to the ready-to-buy buyers we’re talking to).
Quality homes seem to be attracting a decent level of interest, but buyers are being choosier and have more time to weigh up their options before making an offer.
Why Canberra’s swings tend to be smaller
Canberra has a habit of doing its own thing. It doesn’t usually see the sharp rises or falls that other cities do. Less rollercoaster, more the pace of a Sunday stroll around Lake Burley Griffin.
Steadier doesn’t mean immune, though. Rate rises bite Canberrans too, and every market has pockets that are stronger or softer than the averages suggest.
“Should I wait for prices to drop?” is a question we keep getting
We’ve been asked this a lot recently, and it’s a fair question. But we also need to think about this in the context of potentially higher interest rates.
If prices dip, but rates move up, it could play out that when you are ready to buy, your borrowing capacity has reduced. A slightly cheaper home doesn’t help, if your borrowing power has shrunk by more.
The best time for *you* to buy will depend on your own budget, your income, how much you have saved, where you’re at with your career/family etc, and ultimately what your own property goals are.
If you’d like to know exactly where you stand right now, let’s have a chat.
We’re here to help.
