Property prices rise (ever so slightly) in 5 capital cities

Posted: 1 August 2019 2:46 pm
News

A view of a city with houses in front.

For the second month in a row home value data suggests the property market's decline may be over.

Last month's CoreLogic home value index showed that prices had stopped falling in Sydney, Melbourne and Hobart. This month, prices rose slightly in all three cities, plus Darwin and Brisbane.

And this time, the nationwide value index showed 0.0% growth over the previous month, meaning that overall property prices have stopped falling.

But Canberra, Adelaide and Perth all recorded small declines in value compared to June.

"Our national dwelling value index may have found a floor in July, with dwelling values holding firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year," said CoreLogic head of research Tim Lawless.

There are some strong positive factors influencing the housing market at the moment:

  • Record low rates. The Reserve Bank of Australia has cut the cash rate twice in June and July, driving mortgage interest rates down. This makes mortgage repayments lower for many borrowers.
  • Lower prices. No one should consider property prices to be "low" in cities like Sydney and Melbourne but the rapid, recent decline in prices has certainly helped first home buyers.
  • Looser lending guidelines. APRA recently adjusted its guidelines for lenders assessing a borrower's ability to afford repayments. This essentially makes it slightly easier to qualify for a home loan.
  • Reduced supply. While recent price drops have made it a buyer's market there are 25% fewer properties for sale now than there were this time last year, restricting supply and driving up demand.

While we only have two months of data to work with, it seems that the fast decline in property prices which started in 2017 (or earlier in Perth and Darwin) and continued throughout 2018, may be stabilising.

Lawless also noted that auction clearance rates were around 70% in Sydney and Melbourne in July, and said that recent CoreLogic data showed "a modest rise in the daily number of mortgaged related valuation events, signaling a lift in housing finance commitments over the most recent two months."

Whether this means flat or limited growth or a return to rapid price rises remains to be seen.

Got a mortgage? Switch to a lower rate and save

Rates last updated January 19th, 2020
$
% p.a.
Offset account
Split account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Maximum Insured LVR Amount Saved Short Description
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
Bank of Melbourne Basic Home Loan - LVR above 60% up to 80% (Owner Occupiers, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Homestar Star Essentials Home Loan - $150K to $850K LVR up to 80% (Owner Occupier, P&I)
2.74%
2.77%
$0
$0 p.a.
80%
A low rate variable mortgage with minimal fees and redraw facility. Requires a 20% deposit. For every complete application Homestar will donate $250 to select charities to help bushfire victims.
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.30%
$0
$10 monthly ($120 p.a.)
80%
Buy your home and lock in a low rate for the first two years. Available with a 10% deposit.

Compare up to 4 providers

Latest home loans headlines

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site