Prices might be as inaccessible as ever when it comes to the usual suspects, but it would appear the Australian housing market is finally settling down on the demand side of things.
As per Domain’s BDI (August 2022), buyer demand peaked in 2021 across all cities and regional Australia. This is with the exception of houses and units in Perth as well as units in Adelaide, which peaked a little later in 2022.
In terms of specifics, Sydney was one of the first markets to begin cooling off in March 2021, with analysis indicating it’s further along the price cycle than everywhere else around the country. For perspective, buyer demand for the Harbour City is now at its lowest level in three years.
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Around the same time, Melbourne units hit their apex before Melbourne houses came around in October. This was also when Brisbane (houses & units) and Adelaide (just houses) began to see the other side. Perth, on the other hand, was a little late to the party. The height of interest for units was in February 2022 while houses were a month thereafter in March 2022.
“It may appear that the Australian housing market changed gear overnight. In truth, market dynamics have slowly been on the cool since 2021,” explained Domain Research.
“Since the October 2021 peak in the Domain BDI, buyer demand has moderated as wages struggle to keep pace with rising inflation and tightening affordability.”
“Across the combined capitals, current demand is 32.6% lower for houses and 27.7% lower for units compared to the peak. This aligns with the reduction in home loans financed and housing activity.”
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So where is the domestic real estate market headed at this stage?
Domain Research added: “Next week is the start of spring and marks the busiest time for the property market. It will be the first spring in three years unhampered by COVID lockdowns.”
“The transition from winter to spring will see a lift in new listings and an emergence of more buyers. The rise in properties for sale will test the number of active buyers and whether sellers are meeting market price expectations.”
“This will be the first real test of the property market since interest rates started to rise.”
Check out when the Australian housing market peaked according to Domain data below.
The Australian Housing Market Peaks (According To Domain)
- Sydney
Houses: March 2021 | Units: March 2021 - Melbourne
Houses: October 2021 | Units: March 2021 - Brisbane
Houses: October 2021 | Units: October 2021 - Adelaide
Houses: October 2021 | Units: February 2022 - Canberra
Houses: July 2021 | Units: July 2021 - Perth
Houses: March 2022 | Units: February 2022 - Hobart
Houses: February 2021 | Units: September 2021 - Darwin
Houses: June 2021 | Units: July 2021
- Regional Australia
Houses: October 2021 | Units: January 2021 - Combined Capitals
Houses: October 2021 | Units: October 2021
