Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Australian housing market winds back to 2012 levels

Red and gray houses

Fresh data has indicated home values are continuing to fall, fuelled by declines in investor hot spots and capital city markets.

CoreLogic’s latest Hedonic Home Value Index has revealed that property prices declined by 0.5 of a percentage point nationwide in October, led by a 0.6 of a percentage point fall in combined capital city home values and a 0.2 of a percentage point drop in combined regional home values.

CoreLogic reported that the sharpest decline across Australia’s capital cities was in Perth, where prices dropped by 0.8 of a percentage point, followed by Sydney and Melbourne, which both reported October declines of 0.7 of a percentage point.  

CoreLogic also reported that Hobart and Adelaide were the only capitals to report a rise in home values, which increased by 0.9 of a percentage point and 0.2 of a percentage point, respectively, while property prices in Brisbane, Darwin and Canberra remained stable in October.

Advertisement
Advertisement

When analysed on an annual basis, Sydney’s property prices have taken the biggest hit, dropping by 7.4 per cent, followed by Melbourne (4.7 per cent), Perth (3.3 per cent) and Darwin (2.9 per cent).

Conversely, CoreLogic noted that the largest increase in property prices over the 12 months to October 2018 was in Hobart (9.7 per cent), followed by Canberra (4.3 per cent), Adelaide (1.8 per cent) and Brisbane (0.4 of a percentage point).

Combined regional values also increased year-on-year, rising by 0.8 of a percentage point.  

However, overall, national home values slipped by 3.5 per cent in the year to October 2018, which CoreLogic’s head of research, Tim Lawless, said was the weakest result since February 2012 and attributed the market downturn to tighter credit conditions.

“With such broad-based weakness in housing market conditions, it’s clear that tighter credit availability is acting as a drag on housing demand and impacting adversely on the performance of housing values across most areas of the country,” Mr Lawless said.

Australian housing market winds back to 2012 levels
Red and gray houses
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
The Patriot - It seems madness to lower interest rates when we know that we will need room to drop later as the economy slows on back of China slowing. If wages do.......
Anonymous - Does the RBA think?....
Anonymous - Bloody mad. Much cheaper and better and more fun to learn to cook for yourself. And, if you are time pressed, a crockpot set up the night before and.......
Anonymous - The RBA seems to think more expensive land is prosperity. Not for the landless!....