Home values across Australia’s capital cities fell by 0.3% over in November, providing further evidence that the rate of house price growth is slowing.
According to the November CoreLogic RP Data Home Value Index, home values rose in Sydney (1%), Brisbane (0.4%), Perth (0.9%) and Hobart (0.2%) but fell across the remaining capital cities.
Official Australian Bureau of Statistics numbers also show a slowing in home prices. Home prices in capital cities rose 1.5% in the September quarter 2014 compared to a 1.9% increase for the previous quarter.
Cameron Kusher, CoreLogic RP Data research analyst, says the rate of annual home value growth across the combined capital cities continues to slow after peaking at 11.5% over the 12 months to April.
“Although combined capital city home values increased by a healthy 8.5% over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year,” Kusher says.
Excluding Hobart, across each capital city the annual rate of capital growth is now lower than its recent peak.
This suggests most cities have now moved past their cyclical peak, Kusher says.
Growth in Sydney peaked at 16.7% in April and at 11.9% in January for Melbourne.
“Although Sydney and Melbourne appear to have moved through their peak periods, capital growth conditions have consistently been the main drivers of value growth over the past 12 months,” he said.
“Market indicators such as auction clearance rates remain quite strong, but also point to slightly weaker overall housing market conditions,” Kusher says.
With just one month left to the year, 2014 is looking as if it will see a lower level of capital growth than last year.
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