Melbourne and Sydney home prices have been falling faster in recent months

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  • Sydney and Melbourne home prices have fallen 6.1% and 3.4% respectively over the past year, according to CoreLogic’s Home Value Index.
  • However, prices in these cities have fallen at a substantially faster pace in recent months, particularly in Melbourne.
  • Perth prices are also showing renewed signs of weakness, although Brisbane and Adelaide are faring better.

Sydney and Melbourne home prices have fallen 6.1% and 3.4% respectively over the past year, according to CoreLogic’s Home Value Index.

While still a mild downturn, especially considering how much values rose in the subsequent price upswing, it’s clear the pace of declines are now starting to accelerate.

Prices fell by 0.9% in nominal terms in Melbourne in September, and by 0.6% in Sydney, far larger than the levels reported earlier this year, especially in Melbourne.

After removing the impact of seasonal patterns, that meant Melbourne prices fell at an annualised pace of 14% in September, according to analysis from Macquarie Bank, while Sydney prices fell by a smaller but still large annual pace of 10.5%.

Clearly, both a significantly faster than the annual decline in nominal values recorded in both cities over the past 12 months, indicating that the pace of the downturn has accelerated in recent months.

This chart from Macquarie shows the evolution in monthly annualised price movements by individual capital city going back to the start of 2016.

Macquarie Bank

Not only have pace of declines in Melbourne and Sydney accelerated in recent months, but there are also signs that Perth prices are coming under renewed pressure.

In contrast, Adelaide and Brisbane are so far managing to buck the broader trend, undoubtedly benefiting from comparatively better housing affordability and less impact from a continued tightening in mortgage lending standards.

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