CoreLogic weekly Australian house price update: falls

In the week ended 8 August 2019, the CoreLogic 5-city daily dwelling price index, which covers the five major capital city markets, retraced by 0.05%:

It was the first decline in four weeks.

The fall in values was broad-based, with all major markets falling:

The quarterly decline is running at 0.30%, with Melbourne and Sydney turning positive:

Annual losses are running at 7.5%, driven by Sydney, Melbourne and Perth:

The next chart plots month-end price growth across the major capitals, which shows a modest rebound across Sydney and Melbourne, and stabilisation at the 5-city level:

Finally, dwelling values have fallen by 10.7% since their most recent peak, led by Sydney (-14.7%), Melbourne (-10.8%) and Perth (-20.3%):

Despite this week’s falls, Sydney’s and Melbourne’s markets look to have bottomed, as reflected by surging auction clearance rates:

As you can see, the swift bounce in clearance rates is pointing to prices rebounding strongly. However, in practice the rebound is likely to be stunted by the low volumes and ongoing lack of available credit.

Leith van Onselen

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