- Multi-year declines in the Sydney and Melbourne property markets appear to be abating, as the latest figures from property analyst CoreLogic show the first uptick in house prices since 2017.
- Auction clearance rates have recovered since the May federal election, subsequent interest rate cuts and loosening of lending standards according to AMP Capital chief economist Shane Oliver.
- Despite other capital cities continuing to decline, June recorded the lowest month’s falls since March 2018.
Light appears to be at the end of the tunnel for Australia’s two largest cities.
Sydney house prices rose for the first time in two years, edging 0.1% higher in June, while Melbourne’s managed to rise by 0.2%, according to the CoreLogic home value index.
Both markets have enjoyed a bump following the federal election, and subsequent interest rate cuts according to AMP Capital chief economist Shane Oliver.
..Aust home prices likely at/close to bottom thanks to election outcome, rate cuts & APRA changes…but likely to remain constrained by high debt/income, tighter lending stds, record unit supply (esp Syd) & rising unemp. Expect flat prices next year. Key is unemployment#ausecon pic.twitter.com/54IKgByoJs
— Shane Oliver (@ShaneOliverAMP) July 1, 2019
The modest bumps will be little comfort for homeowners who have ridden year-long declines of 9.9% and 9.2% declines each, but it may be a sign that the worse is behind them.
Sydney’s property market has been on the wane for almost two years since June 2017, while Melbourne’s has slid for more than 18 months.
That comes as auction clearance rates pick up sharply in both capitals.
Other capitals, having not suffered the same dramatic falls in the previous year, continue to decline.
However, June was still a bright spot, seeing the smallest declines across Australian capitals since March 2018, according to CoreLogic figures.
“Prices were down a further 0.1% in the eight capital cities, taking the annual fall to 8.0% and the peak-to-trough fall to 10.2%,” Commonwealth Bank senior economist Belinda Allen noted in a release regarding the numbers.
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