The CoreLogic April 2019 home value index is out and shows yet another month of declines for Australian house prices.
CoreLogic is a research firm that monitors residential and commercial property prices across Australia.
Australia’s Falling House Prices
CoreLogic said that dwelling values across Australia continued their downward trajectory in April 2019, falling by 0.5% during the month to be down 7.2% over the past 12 months and 7.9% lower since peaking in September 2017.
It wasn’t good news for the two major cities.
Sydney house prices were down 0.7% over the month, 2.5% over the past three months and down 10.9% over the past year. Since peaking, Sydney house prices have fallen by 14.5% according to CoreLogic.
Melbourne house prices fell 0.6% in April, were down 2.4% during the quarter and has seen an annual decrease of 10% compared to a year ago. Since the peak Melbourne house prices are down 10.9%.
April 2019 saw price falls in almost every capital city. Brisbane house prices fell 0.4%, Adelaide house prices dropped 0.1%, Perth prices declined another 0.4%, Hobart house prices went down 0.9% and Darwin home prices fell 1.2%.
Canberra was the only city to register an increase, house prices rose there by 0.4%.
CoreLogic head of research Tim Lawless said: “The improvement in the rate of decline is attributable to an easing in the market downturn across Sydney and Melbourne where values were previously falling much faster.”
The main change in this monthly update by CoreLogic, other than the easing of declines, was the rapid turnaround for Hobart. It had been the strongest performer during this negative period for Sydney & Melbourne, but a sharp decline of 0.9% in one month could be the start of a reversal.
It’s not a good sign for Australia and New Zealand Banking Group (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) that house prices continue to fall.
ANZ reported earlier today in its HY19 result that its 90+ day Australian home loan arrears continue to rise.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
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