CoreLogic weekly house price update: slowing falls

In the week ended 17 September 2020, the CoreLogic 5-city daily dwelling price index, which covers the five major capital city markets, fell another 0.07%:

It was the 19th consecutive weekly decline.

The fall was driven by Melbourne and Sydney, whereas the other capitals recorded rises:

So far in September, dwelling values have fallen by 0.17%, again driven by Melbourne and Sydney:

Quarterly dwelling values continue to fall, also led by Melbourne and Sydney:

Whereas annual price growth continues to fade:

The next chart plots month-end price growth across the major capitals (to end-August), which shows the down turn across Sydney and Melbourne:

Finally, dwelling values are down 3.0% from their pre-COVID peak, driven by Melbourne (-5.4%):

So, the Aussie property market is stabilising, which was confirmed by the latest strong rebound in mortgage data.

That said, the Australian economy and property market is operating in an artificial bubble, propped up by massive emergency income support, early superannuation release, mortgage repayment holidays, and moratoriums on corporate insolvencies.

The real test will come in early 2021 as these artificial supports are removed.

Leith van Onselen
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