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House prices fall for the first time in nearly two years as rising interest rates bite

Australian home prices have fallen nationally for the first time in at least 20 months, according to two leading monthly indices.

Both indices — from CoreLogic and REA’s PropTrack — put the national monthly fall at about 0.1 per cent.

CoreLogic records that as the first monthly decline since September 2020, while PropTrack has it slated as the first fall since the COVID-19 pandemic started.

CoreLogic reported much bigger home-price falls for Sydney (-1 per cent) and Melbourne (-0.7 per cent), dragging down the national average, while PropTrack estimated both cities eased 0.3 per cent.

Both indices also found Canberra prices fell last month for the first time in around three years.

The rival data providers also found that price growth remained the highest in Adelaide, Brisbane and some regional areas.

CoreLogic’s home value index shows Australia’s most expensive cities of Sydney, Canberra and Melbourne leading the decline.(Supplied: CoreLogic)

“A clear two-speed housing market has emerged,” PropTrack’s Paul Ryan said.

Tree change remains appealing

Natasha Di Sano and her husband Daniel, in search of more space to raise their three children, moved their family to a new home last month.

Natasha Di Sano sits on her steps.
Natasha Di Sano says moving her family of five, and their dog Akira, further out of Sydney has allowed them to build a better way of life.(ABC News: Dan Irvine)

“It was my husband who came to me with the idea,” Ms Di Sano said.

“It was for us to build a better life for both my husband and myself and our three children, to give them more of an opportunity to be on bigger land, to feel free to be themselves, as well as give us the opportunity to just live a different lifestyle, not so much of the fast pace.”

While not technically a regional move, they sold the home they had, on 500 square meters in the outer north-western Sydney suburb of Kellyville Ridge, about 40 kilometers from the CBD, and moved about twice as far away from the city to Kurrajong, where their three children now have two and a half acres to run around on.

Exterior picture of a house in far outer north-west Sydney.
The Di Sano family’s new home sits on 20 times as much land as their former house, with a mortgage that’s about the same amount.(ABC News: Dan Irvine)

As well as the extra land, and 16 chickens, their new home has more bedrooms and living areas, as well as a granny flat.

“We haven’t reduced the loan as much as I guess we would like to have, it’s pretty much like we’ve done a swap,” she said.

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