- Australian home prices have fallen for 11 consecutive months. Data released by CoreLogic today suggests that streak will extend to 12 months in September.
- Prices across Australia’s five mainland capital cities — Sydney, Melbourne, Brisbane, Adelaide and Perth — fell by 0.2% in average weighted terms last week, leaving the decline over the past four weeks at 0.5%.
- Sydney’s median price has fallen 6.1% over the past year, more than double the 2.9% fall recorded in Melbourne.
Australian home prices fell for an 11th consecutive month in August, according to data released by CoreLogic.
It looks like that stretch will extend into a 12th month in September based off information released by the group today.
Last week, prices across Australia’s five mainland capital cities — Sydney, Melbourne, Brisbane, Adelaide and Perth — fell by 0.2% in average weighted terms, leaving the decline over the past four weeks at 0.5%.
With just six days left in September, that all but ensures another month of national price declines in the absence of an unexpected spike in valuations.
Year-to-date, prices across these capitals have fallen 3.2% in average weighted terms, extending the decline over the past year to 3.7%.
By individual capital, prices fell by 0.2% apiece in Sydney, Melbourne and Adelaide last week, while valuations in Perth fell by a smaller 0.1%. Brisbane, at 0.1%, was the only mainland capital to register an increase in median values from one week earlier.
Identical results were also recorded across the capitals in terms of monthly movements with values falling in all locations except for Brisbane over this period.
Perth’s median value slipped 0.7%, outpacing further declines in Melbourne and Sydney which fell 0.6% and 0.5%. Adelaide prices dipped 0.1% while Brisbane’s increased by the same margin.
Helping to explain the national 3.2% decline in valuations so far in 2018, prices in Sydney and Melbourne have fallen 4% apiece. These markets account for around 40% of all Australian homes, and make up around 60% of Australia’s total housing wealth.
Perth valuations have also fallen 2.8% this year.
In contrast, prices in Brisbane and Adelaide have managed to buck the overall trend, increasing 0.4% and 0.6% respectively.
Over the past year, Sydney values have now fallen 6.1%, more than double the 2.9% and 2.6% declines registered in Melbourne and Perth over the same period.
Prices in Brisbane and Adelaide have risen 0.8% in contrast.
Tighter lending standards, particularly for high debt and loan to income borrowers, along with an increase in property listings, reduced foreign investor activity. And souring in sentiment towards the outlook for prices has contributed to recent divergence between Sydney and Melbourne — where home prices are significantly higher than in other pasts of the country — and more affordable capital city markets.
Perth’s market, despite recent strength in commodity markets and a broader improvement in the economy, is still grappling with the fallout from the end of the mining infrastructure boom, including interstate migration to the eastern states.
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