Home price falls wipe billions from residential property market
Australian residential property values fell by $34.1 billion in the June quarter, marking the first contraction in four years. Economists warn that further projected price drops could significantly impact household wealth and the broader national economy.
Why it matters
As a large portion of Australian household wealth is tied to real estate, a sustained market downturn poses a significant risk to national economic stability.
Australia’s collapsing real estate prices have delivered a massive hit to the economy, wiping billions from the residential real estate market in the span of three months.
Alarming ABS figures released today showed the value of the residential housing market shrank by $34.1 billion over the June quarter, dragging the total value of the market down to $12.68 trillion
It was the first time in four years that the total value of the market contracted, according to ABS head of finance statistics Dr Mish Tan.
“This is consistent with recent softening in housing market conditions,” Dr Tan said, noting home prices dropped by an average of 0.7 per cent nationally over the period.
Auction clearance rates have tanked in recent weeks as home prices fall. Picture: Jane Dempster
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