Yahoo Finance Housing downturn claims another shock victim
The shining - and practically lone - beacon of Australian property growth, Hobart, has recorded a staggering 0.9 per cent fall in value, leaving Canberra as the only Australian city to achieve positive growth in April.
Previously one of the strongest markets in Australia, the monthly fall of 0.9 per cent marks the first time Hobart homes have fallen in value since January when they softened 0.2 per cent, and the largest fall in years, CoreLogic analysis released today revealed.
However, Hobart still retains its spot as the top sub-region for annual change in dwelling values, up 3.9 per cent in the last 12 months.
Across the country, dwelling values fell 0.5 per cent to a median value of $519,879, the slighter decline suggesting Australian property is through the worst, the CoreLogic analysts 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,” CoreLogic head of research Tim Lawless explained.
“In December last year, Sydney dwelling values were down -1.8 per cent, with the pace of month-on-month falls progressively moderating back to -0.7 per cent in April. Similarly, Melbourne values were down -1.5 per cent in December, with the rate of decline improving to -0.6 per cent in April."
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He said the current trends in data imply that housing market conditions “may have moved through the worst of the downturn”.
However, while the downturn is slowing, it’s also spreading, and it’s unlikely positive growth will return soon.
“Although the rate of decline has moderated, we are still seeing values falling across most regions of Australia, and any recovery in dwelling values is likely to be a long term outlook,” said Lawless.
For buyers, this is likely good news, he added, observing the higher number of homes hitting the market relative to buyers who now hold more bargaining power.
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