CoreLogic weekly Australian house price update: slow bleed

By Leith van Onselen

In the week ended 6 June 2019, the CoreLogic 5-city daily dwelling price index, which covers the five major capital city markets, fell by 0.08%:

Values fell across all major markets except Adelaide:

The quarterly decline is running at 1.67%, with all major markets suffering losses:

Annual losses are running at 8.8%, driven by Sydney, Melbourne and Perth:

The next chart plots month-end price growth across the major capitals, which shows prices falling in Sydney, Melbourne, Perth, and Brisbane whereas they are flat in Adelaide:

Finally, dwelling values have fallen by 10.7% since their most recent peak, led by Sydney (-15.0%), Melbourne (-11.2%) and Perth (-19.4%):

With negative gearing reform off the table, APRA lowering its interest-rate buffer and lowering small bank mortgage capital requirements, first home buyer subsidies coming, and interest rate cuts, we expect house prices to find their bottom in the second half.

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