Canberra house prices fall as interest rates rise to 15-year high
Canberra home values fell 1.1 per cent in September as the Reserve Bank hiked rates to their highest level in 15 years.
Canberra house prices fell 1.1 per cent in September, bringing the median to about $860,000, according to Cotality's Home Value Index. The fall came a day after the Reserve Bank lifted interest rates to their highest level in 15 years to fight inflation.
Houses dropped 1.1 per cent in the month while units and townhouses fell 1.3 per cent. Over the quarter, houses are down 3.5 per cent and units down 2.4 per cent.
Canberra property has lost 6.2 per cent or about $57,000 in value since the May 2022 peak. Cotality research director Tim Lawless said rising rates have eroded borrowing capacity by about $90,000, offsetting the drop in dwelling prices.
- 1.1 per cent
- September price fall
- $860,000
- Median house price
- $57,000
- Loss since May 2022 peak
- $90,000
- Borrowing capacity reduction
Why it mattersBuyers face a cruel paradox: property is cheaper but they can actually borrow less because interest rates make repayments far costlier.
AustraliaCanberra home buyers are losing purchasing power despite falling prices, making homeownership harder even as the market cools.
✓ Claims checked against the source. checked 1 h ago
Open this story in InSnip →
