The slowdown will be welcomed by many potential buyers after prices reached a peak in March this year, when they rose 2.8 per cent in a month.
“Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don’t yet own a home,” he said.
“Lockdowns are having a clear impact on consumer sentiment, however to date the restrictions have resulted in falling advertised listings and, to a lesser extent, fewer home sales, with less impact on price growth momentum.”
Lawless said it’s likely that the ongoing shortage of properties for sale is central to the pressure on housing values.
Prices across the nation
Every capital city recorded a rise in home values for the month, with the exception of Darwin where values fell 0.1 per cent.
The August update takes Australian housing values 15.8 per cent since January and 18.4 per cent above levels a year ago.
In dollar terms, the increase in national dwelling values equates to approximately $103,400 in 12 months, or $1,990 per week.
In comparison, Australian wages are rising at the average annual rate of 1.7 per cent.
Despite the monthly rate of growth slowing, Lawless points out that it is still the highest pace of yearly growth over the last year since July 1989.
“Through the late 1980’s, the annual pace of national home value appreciation was as high as 31 per cent, so the market isn’t quite in unprecedented territory,” Lawless said.
“The annual growth rate at the moment is trending higher, in fact, it is 3.6 times higher than the thirty-year average rate of annual growth.”