The Q2 2022 Australian housing market saw a general increase in the Repayments Index, indicating a decrease in
affordability, and a decrease in the Deposit Index, indicating a fall in house prices, making it easier to save for a
deposit. Our report can be downloaded by clicking here.
Aggregating across Australia, national housing repayments increased by 8.3 index points, whilst deposit
costs decreased by 4.4 points. Median house prices have fallen for the last two quarters, reporting a drop of -1.15%
in the Q2, 2022.
This was not reflected across the board, however, with both Adelaide and Perth reporting a $15,000
(2.3%) and $12,500 (1.4%) median increase for the quarter with Brisbane median price plateauing at $800,000.
Melbourne prices have continued to fall from their high point in the 4th quarter of 2021 and subsequently reported a
median decrease of $39,000 (-4.0%), the largest of any capital city.
Housing transfers data also indicate a decline in relative market activity with all states reporting a drop when
compared to figures from the 2nd quarter of 2021. This was strongest in Sydney and Melbourne who now only make
up for make up less than 46% of all housing transfers for the quarter, a far cry from pre-covid levels in Q4 2019
where they represented 57% of house transfers. Over the last 12 months there has been a drop of 29% in house
transfers across all of Australia.
The relative unaffordability of housing is obviously impacting market activity with fewer potential purchasers being
prepared to pay asking prices and few vendors being prepared to drop their expectations
- Interest rates have pushed repayment unaffordability levels back to a 13 year high with the index at 160.1,
higher than Q4 2021 and the worst since the 3rd quarter of 2008.
- Every capital city experienced an increase in the index (which indicates a decrease in affordability) between
Q1 and Q2 this year. The largest increases were Adelaide (12.4) and Canberra (12.1), above the weighted
average increase of 8.3.
- Perth was marginally above the weighted average increase at 8.8 and Brisbane (7.8), Melbourne (7.2),
Sydney (6.7), Hobart (4.1) and Darwin (3.0) below it.
- Deposit affordability actually increased with that index figure falling by 4.4 points on average around
Australia between Q1 and Q2 this year, reflecting a fall in house prices.
- The Deposit Index declined the fastest quarter on quarter in Hobart (-15.4), Melbourne (-7.5), Darwin (-
6.9),Sydney (-6.4), Brisbane (-4.3) and Canberra (-1.8). It increased marginally in Perth (0.8) and Adelaide