Annual house price growth in Sydney is edging closer to 0%

Photo: Lance King/ Getty Images.

House prices in Sydney and Melbourne declined again last week, along with price falls in smaller markets.

CoreLogic’s weekly house price data showed Sydney house prices declined by another 0.2%, amid low auction volumes over the Australia Day long weekend.

That leaves the monthly fall at 0.7%.

The annual house price growth in Australia’s biggest market is now just 1.4% — down from 1.9% growth in the previous week.

Melbourne’s market also continues to cool — albeit to a lesser extent than Sydney — while price falls extended last week to Adelaide and Perth:

Source: CoreLogic

The broader declines led to a 0.4% fall in prices nationally in the last week of January — slightly in excess of 0.3% fall in the week prior.

The latest falls came amid low auction volume over the holiday season. The number of auctions in January is only a fraction of the volumes seen at the end of last year.

Volumes will start to pick up in the Autumn months, which will give a better indication as to the direction of house prices in 2018.

This morning’s data comes ahead of CoreLogic’s monthly house price data for January, scheduled for release on Thursday.

The monthly data will include a breakdown of dwelling values for both homes and units across each of Australia’s capital cities.

CoreLogic figures showed house prices declined in December. However, analysis last week from ANZ suggests that the worst of the price falls may already be over, if the data is adjusted to factor in the effects of seasonality.

Ahead of a pickup in auction activity, the number of homeowners listing their properties for sale continued to rise last week.

There were 94,517 properties listed nationally — an increase of 4.4% from the previous week and 3.1% higher than the same time last year.

Within that figure, there was a 6.4% weekly increase in the number of Sydney houses listed for sale.

More broadly, the weekly data showed a continuation of the recent pattern with Sydney listings more than 20% higher than 12 months ago while the number of sellers in Hobart has declined sharply:

Source: CoreLogic

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