- Data from CoreLogic showed house prices in Sydney and Melbourne continued to fall last week.
- The falls coincided with a notable decrease in auction clearance rates.
Sydney and Melbourne property prices fell for the second straight week, coinciding with a decline in auction clearance rates.
Data from CoreLogic showed Sydney home prices edged lower by 0.1% last week, with a steeper 0.2% drop in Melbourne.
It follows a 0.2% fall across both markets last week, after price held steady with a week of flat growth to start the month.
Prices across Australia’s combined capital cities recorded a 0.1% drop:
While annual falls in Sydney now lead declines across the major capitals, Perth recorded the biggest weekly fall with a 0.3% drop.
Adelaide was the only market to record a weekly gain, while Brisbane house prices were flat.
Over the year-to-date, annual rates of decline in the Sydney market held steady at 5.9%. But last week’s falls saw 12-month falls in Melbourne accelerate from 2.1% to 2.5%.
Amid the ongoing downturn in credit growth and tighter lending standards by the big banks, the number of properties listed for sale also continues to increase.
Across all of Australia’s capital cities last week there were 112,630 properties listed for sale, up 9.2% from the same time last year (an increase from 8.2% in the week prior).
The broader trend continues to be led by Sydney and Melbourne, which rose by 22.8% and 15.5% respectively.
The weekend price action also coincided with a notable fall in successful auctions, as prelimianry auction clearance rates fell to their lowest level of the year.
Most property analysts remain of the view that the ongoing housing downturn will remain orderly without turning into a rout.
But the weekly data indicates that prices are still on a downward trajectory as the heat comes out of the market.