Home values still falling
June marks the ninth consecutive month of home-value declines.
CoreLogic's June Home Value Index shows Australian dwelling values fell 0.2% over the month to sit 1.3% below their September 2017 peak.
"Tighter finance conditions and less investment activity have been the primary drivers of weaker housing market conditions and we don't see either of these factors relaxing over the second half of 2018, despite APRA's 10% investment speed limit being lifted this month," CoreLogic research director Tim Lawless said.
Sydney and Melbourne continued their decline, with home values falling 0.3% and 0.4%, respectively. Sydney home values are now down 4.5% for the 12 months to the end of June, while Melbourne values remain 1% higher on an annualised basis.
Hobart remains the nation's top-performing capital city. The city saw a 0.3% rise for the month to take values 12.7% higher for the 12 months to the end of June. However, value growth is slowing in Hobart, with prices rising 2.3% for the quarter compared to 3.4% in the March quarter.
Darwin was the worst performing capital city. Prices fell 1.1% for the month to be down 7.7% on an annualised basis.
Regional areas continued to outperform capital cities. While combined regional prices were flat for the month, values are up 2.2% for the year to the end of June, compared to a 1.6% decline for combined capitals.
In spite of the declines, Lawless said national dwelling values remain 32.4% higher than just five years ago.
"This highlights the wealth creation that many homeowners have experienced over the recent growth phase, but also the fact that recent home buyers could be facing negative equity," Lawless said.
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