Aussie house prices end 2022 in the toilet

CoreLogic’s daily dwelling values index, which tracks price movements across the five major capital city markets, fell another 0.29% in the week ended 22 December. This was the 33rd straight weekly fall. By contrast, values in Adelaide have only fallen modestly (-0.17%), whereas Perth values have risen (+0.10%):The quarterly pace of decline remains swift, with values down 3.4% at the 5-city aggregate level. According to Finder, the amount of pre-tax income needed to service a $500,000 mortgage has ballooned from around $121,000 in April 2022 to $181,000 as at December, following the RBA’s 3.0% of interest rate hikes:Lower borrowing capacity equals lower house prices. And the more the RBA hikes interest rates, the further house prices will fall.