Major regional centres including the Illawarra have recorded a decline in home values, marking the end of nearly two years of significant capital gains, according to new data.
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Australian dwelling values fell by -1.3 per cent in July, marking the third consecutive month CoreLogic's national Home Value Index has fallen.
After national dwelling values surged 28.6 per cent through the pandemic growth phase, values are now -2 per cent below April's peak.
Illawarra dwelling values fell by -1.5 per cent in the month of July.
CoreLogic data also reveals the median value of homes in the Illawarra sits at $955,203 in July.
As for dwellings in the Southern Highlands and Shoalhaven, values fell by -3.1 per cent in July and the median value sits at $991,018.
CoreLogic's research director, Tim Lawless, said housing market conditions are likely to worsen as interest rates surge higher through the remainder of the year.
"The rate of growth in housing values was slowing well before interest rates started to rise," he said.
"However, it's abundantly clear markets have weakened quite sharply since the first rate rise on May 5.
"Although the housing market is only three months into a decline, the national Home Value Index shows that the rate of decline is comparable with the onset of the global financial crisis (GFC) in 2008, and the sharp downswing of the early 1980s.
"In Sydney, where the downturn has been particularly accelerated, we are seeing the sharpest value falls in almost 40 years."
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Grace Crivellaro
Court reporter for the Illawarra Mercury.
Court reporter for the Illawarra Mercury.
