Australian house price growth continues to stall, maintaining the trend seen in October.
According to CoreLogic, house prices across Australia’s five mainland state capitals were unchanged last week in average weighted terms, leaving the decline over the past four week’s at 0.1%.
Despite a modest bounce in its preliminary clearance rate in early November, weakness in Sydney continued to drag down the national average with prices in Australia’s largest and most expensive housing market falling 0.1% over the week.
The soft result in Sydney offset a 0.1% increase in Melbourne and Perth and unchanged readings in Brisbane and Adelaide.
Over the past four weeks, prices in Sydney have fallen by 0.5%, masking small gains in all other mainland state capitals over that period.
From a year earlier, house prices nationally grew by 6.8% in weighted terms, well off the double-digit levels seen earlier this year. That largely reflects recent weakness in Sydney and a slowdown in Melbourne’s housing market.
While other factors have contributed to slowdown in Sydney’s housing market, including tighter restrictions on local and foreign investor lending and affordability constraints, a sharp increase in stock available for sale also helps to explain why prices in the city are falling.
According to CoreLogic, there are currently 26,459 properties for sale in Sydney, up 19.9% on the same period a year ago. In comparison, stock levels in Melbourne, where prices continue to increase, have risen by just 0.9% over the same period.
Hobart, home to the hottest price growth over the past year, property listings have slumped by 32.9% from early November last year.
This table from CoreLogic shows available stock levels across Australia’s capital cities.
A new listing is deemed to be a property that has not been up for sale in the past six months.