CoreLogic’s dwelling price results have been released for June, which reveals another 0.08% decrease in values recorded over the month at the 5-city level. However, Sydney and Melbourne recorded their first monthly rises in 23 months and 19 months respectively:
It was the 21st consecutive monthly decline in home values at the 5-city level:
In the June quarter, dwelling values fell by 1.1% across the major capitals:
Over the June quarter, values were down across all major markets:
In the year to June 2019, home values fell by 8.4% at the 5-city level, driven by Sydney (-10.1%), Melbourne (-9.5%) and Perth (-9.2%):
The next chart, which tracks trend annual price growth, shows a turning trend:
Whereas the below chart tracking price growth on a quarterly basis shows a sharp turnaround:
The housing bust slowed significantly in June, driven by the death of negative gearing and CGT reform, which has benefited the investor hotspots of Sydney and Melbourne in particular.
Interest rates have also been cut (with more to come), APRA has announced loosened mortgage and capital standards, and the Morrison Government has announced first home buyer subsidies. Therefore, the bottom is imminent.
This view is also supported by the recent bounce in auction clearances in Sydney and Melbourne, which typically lead price growth:
