Australian home prices fall 1.1% as stocks tumble and rate pressure deepens

  • Australian home prices fell for a sixth consecutive month as the S&P/ASX 200 also weakened amid broader economic concerns.
  • The national housing decline was 1.1% in September, while the benchmark stock index fell 119 points, or 1.4%, to 8,669.
  • Rate uncertainty, weaker sales and factory activity pressured sentiment, with forecasts pointing to a 10% to 15% national housing decline.

Australian home prices fell 1.1% in September, extending the national decline to six consecutive months, while the S&P/ASX 200 dropped 119 points, or 1.4%, to 8,669 in early October trading. Housing values were 5.2% below their peak and unchanged from a year earlier, with Sydney down 1.4% in September and nearly 9% below its February peak. Sales over the latest three months were 19% below a year earlier as inventories rose and investor demand weakened. Factory activity contracted at its fastest pace in 21 months, while energy minerals, financials, healthcare and logistics shares led the market decline. The Reserve Bank of Australia raised rates four times this year to 4.6%, although Governor Michele Bullock indicated the September increase could be the final hike; reports also said the central bank remained prepared to tighten further if necessary. Economists expect a 10% peak-to-trough housing decline, with AMP forecasting a 10% to 15% fall before a modest recovery in 2027-28.

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