According to the latest CoreLogic Hedonic Home Index, September’s national house prices edged just 0.2 percent higher across Australia over the month, led by a 0.3 percent rise in capital city values and a 0.1 percent gain across combined capital and regional markets.
The latest figures take national dwelling values 0.5 percent higher over the September quarter, which is the slowest rate of quarter-on-quarter growth since June 2016.
According to CoreLogic head of research Tim Lawless, the main capital city trend is that the home price growth rate is clearly losing steam, with dwelling values rising by 0.7 percent over the September quarter and well down from the recent peak rate of quarter-on-quarter growth, which was recorded at 3.5 percent over the December 2016 quarter.
“This slowing in the combined capitals growth trend is heavily influenced by conditions across the Sydney market where capital gains have stalled,” says Lawless.
The September quarter saw Sydney dwelling values edge 0.2 percent higher, and values slipped 0.1 percent lower over the month.
Sydney’s quarterly result was the slowest since values declined by 2.2 percent over the March quarter of 2016 and it’s the first month-on- month decline after 17 months of consistent capital gains.
As for Melbourne house prices, says CoreLogic, they remained relatively resilient compared with Sydney. Dwelling values were almost 1 percent higher over the month of September, and rose by 2.0 percent over the September quarter.
“The stronger housing market conditions in Melbourne are supported by auction clearance rates which have consistently remained above 70 percent,” says Lawson.
Brisbane was perhaps the only capital city offering a glimmer of hope to home owners, with house values 0.2 percent higher over the month to end up at 4.0 percent higher over the year, while unit values showed an increase of over 2.5 percent.
Adelaide also bucked the national trend, with a 5.0 percent rise over the past 12 months.
“While CoreLogic anticipates that dwelling values will trend lower across Sydney and potentially
Melbourne later this year or next, strong demand for housing, along with mortgage rates anticipated to remain low, will help to support a floor under housing prices going forward,” says Lawless.