Sydney and Melbourne home prices are still falling, but not by much

Scott Olson/Getty ImagesModest falls still being seen.
  • Australian home prices continued to fall last week, driven lower by declines in Sydney, Melbourne and Perth.
  • In average weighted terms, prices nationally have fallen over the past month, year-to-date and year.
  • Sydney and Melbourne account for around 60% of the nation’s total housing wealth, meaning changes in these cities are often influential on national price measures.

Australian home prices continued to fall last week, driven lower by declines in Sydney, Melbourne and Perth.

According to CoreLogic, the median dwelling value across Australia’s five mainland state capitals — Sydney, Melbourne, Brisbane, Adelaide and Perth — fell by 0.1% in average weighted terms.

CoreLogic

Prices fell by 0.1% apiece in Sydney and Melbourne, and by 0.4% in Perth, masking flat-to-higher outcomes in Brisbane and Adelaide.

Sydney and Melbourne contain around 40% of all Australian homes, and account for around 60% of the nation’s total housing wealth, meaning changes in these cities are often influential on national price measures.

The continued declines in Sydney and Melbourne, and to a lesser degree Perth, explain the negative national figures for prices over the past month, year-to-date and year.

They also mask that prices in Brisbane and Adelaide have risen over all three periods.

Higher property listings in Sydney and Melbourne compared to a year ago, along with other factors such as tighter lending standards, ongoing affordability constraints and expectations for continued price declines in the period ahead, go someway to explaining the recent divergence between Sydney and Melbourne and other smaller capital city markets.

With auction clearance rates in Sydney and Melbourne both sitting at levels that have coincided with falling prices in the past, it suggests the recent divergence across the country may continue in the months ahead.

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