Property prices flatlined in June, new data has revealed.
According to the latest RP Data – Rismark Hedonic Home Value Index, prices fell 0.2 per cent in June and 0.9 per cent over the quarter.
But while house prices continue to slide, the rate of decline is negligible, especially in comparison to previous months.
“In January we saw Aussie home values fall by 1.2 per cent, which was the weakest monthly result on record. Over the March quarter home values were down by 1.8 per cent. Since that time we have seen the rate of decline slow along with an improvement in our leading indicators, like vendor discounting and time on market,” RP Data’s research director Tim Lawless said.
Improvements in the leading indicators suggest the housing market may be approaching the bottom of the cycle, according to Mr Lawless.
“The average selling time reached a high of 58 days back in March and is now down to 52 days. In contrast, the level of vendor discounting has risen 6.8 per cent in June as vendors become more willing to meet market price expectations,” he said.
“Listing volumes have recently levelled and are now about 2.6 per cent lower than their peak last month.”
But despite these modest improvements, Mr Lawless said the readings remain above the average, highlighting that any return to capital gains is likely to be a way off.