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