According to the latest numbers from property research group CoreLogic, national dwelling values continue to fall but cheaper homes are, so far, untouched.
“With values now falling in Sydney and Melbourne, it is unlikely to initially result in an increase in sales under $400,000. However, should it continue for a number of years we may finally see a reversal of the declining trend in sales under $400,000,” CoreLogic research analyst Cameron Kusher said.
Dwelling value growth slowed over the 2017-18 financial year to -0.8 per cent, following an increase of 10.2 per cent over the previous year.
However, the number of properties sold for less than $400,000 continues to fall as value growth on the lower end of the spectrum continues, falling from 30.7 per cent of all houses to 29.2 per cent, and from 35.4 per cent of unist to 34.6 per cent.
At the same time, the number of million-dollar sales is beginning to slide.
“As housing market conditions continue to weaken, it is anticipated that there will continue to be fewer sales above the $1 million threshold,” Mr Kusher said.
“This will largely be driven by weakening in Sydney and Melbourne. Smaller capital cities are also likely to continue to see the share of $1 million sales climb further too.”
The 12 months to June 2018 saw 16.0 per cent of all houses and 8.8 per cent of units sell for at least $1 million, down from 16.1 per cent of houses in the previous year and 9.1 per cent of units.