The latest research from CoreLogic indicates that the residential housing market in Australia declined in May nationally by 0.4% and the smallest decrease month on month for the year.
Prices across the country are down 7.3% for the year and quarter on quarter a decrease of 1.5% with the average home value now at $519,537 according to the report in PropertyWire (PW).
Head of research Tim Lawless tells PW:
'...that the improvement is primarily being driven by a slower rate of decline in Sydney and Melbourne where housing values were previously falling at the fastest rate of any capital city.'
It is also reported:
'Money on month prices in Sydney fell by 0.5% to $776,135 but they are still 10.7% lower than in May 2018 while in Melbourne they fell by 0.3% month on month to $619,804 and are down 9.9% year on year.'
Other cities including Brisbane have had declines of 0.5% month on month and 2.3% for the year with prices averaging $484,882. Additional decline have also been recorded in Perth with a monthly drop of 1% and down 8.8% when compared to May 2018 with average home prices at $436,090. Prices in Darwin have had declines of 1.6% month on month and 8.6% for the same period leading to May 2018 with price averages now at $393,298.
As for growth the city of Adelaide had an increase of 0.2% month on month and 0.4% for the year. Average home prices are now $431,702. Previously leading the housing market was Hobart where prices have fallen 0.4% month on month and for the year have increased by 3.4% with home price averages at $445,235. The capital Canberra has had a 0.2% decrease in prices month on month and for the year are actually up by 2.4% at $587,583.
Larger declines in growth can be found in the cities of Darwin and Perth where capital city falls are down by 29.5% and 19.2% respectively with Western Australia has declined by 32.5% due to economic conditions regarding the downturn in mining.
On a national scale prices have declined on average 8.2% since the peak period of October 2017 with the combined capitals index values down 10.1% and regional values reported down 3% since the 2017 peak period.
CoreLogic now sees these conditions as opportunities for home buying across Australia especially for younger first time home buyers who are now entering the market.