Australian house prices are still falling

Photo: Daniel Munoz/ Getty Images.

Australian house prices continue to fall in early 2018.

According to CoreLogic, prices fell nationwide by 0.1% last week in average weighted terms, leaving the decline over the month at 0.5%.

Helping to explain the national weakness, prices in Sydney — Australia’s largest housing market — fell by a further 0.2%.

Prices also weakened by 0.1% in Perth.

Accompanied by flat growth in Australia’s remaining mainland state capitals — Melbourne, Brisbane and Adelaide — it explains why prices on a weighted basis continued to decline across the country.

Source: CoreLogic

Over the past month, prices nationally fell by 0.5% in weighted terms. This not only reflects a 0.9% drop in Sydney but also weakness in all other capitals monitored, including Australia’s second-largest market, Melbourne.

With prices continuing to weaken, it saw price growth nationally slow to 3% over the year.

Given the likelihood that more housing stock will hit the market in the months ahead, there’s now a growing chance that annual price growth may turn negative, especially if recent weakness in Sydney and Melbourne persist.

Source: CoreLogic

This next chart shows the seasonal bounce in property listings seen this time of year.

Source: CoreLogic

Helping to explain some of the recent price trends, total properties listed for sale currently stand at 99,475, up 2.6% from the levels seen in early February 2017.

Source: CoreLogic

CoreLogic says there are currently 22,127 properties for sale in Sydney, an increase of 22% from 12 months earlier.

By contrast, in Hobart — where prices are now increasing at the fastest pace of any capital on an annualised basis — total listings have fallen by 35.4% to 1,051.

NOW READ: Housing weakness could produce a shock in Australia’s next GDP numbers

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.