Home values down for 11th consecutive month
It could be a slow spring selling season as stock levels and mortgage rates rise.
CoreLogic's August Home Value Index shows national dwelling values were down 0.3% for the month, with values down 0.4% across the combined capitals. The result marks the 11th consecutive month of falling values across the nation's capitals. Values are now down 2.9% on an annualised basis across capital cities.
"Weaker housing market conditions can be tied back to a variety of factors, foremost of which is the tighter credit environment which has slowed market activity, especially amongst investors. Fewer active buyers has led to higher inventory levels and reduced competition in the market. Collectively, these factors have been compounded by affordability challenges, reduced foreign investment and a rise in housing supply," CoreLogic head of research Tim Lawless said.
Melbourne has taken the distinction of Australia's weakest performing capital city, with values down 2% over the three months to the end of August. Sydney remains the weakest capital on an annualised basis. Values have fallen 5.6% in the city over the year ending August.
Five of the nation's eight capital cities saw declines in value. Values edged up in Darwin, Adelaide and Canberra. Adelaide was the strongest quarterly performer, with values rising 0.5% over the three months ending August.
- Not now: Just 35% think it’s a good time to buy property
- The key to investing in property during lockdown
- Home stretch: 1 in 3 Aussies would move if they could work from anywhere
- How much less can you borrow under new APRA home loan rules?
- RBA Survey: Half of experts say Big Four will raise rates out of cycle, cash rate holds