After four months of growth, Australian property prices are once again on the decline.
New research from RP Data revealed that property prices fell one per cent over October.
The fall was broad-based, with falls being experienced across each of the capital cities apart from Perth and Darwin.
Both Sydney and Brisbane markets recorded a 0.9 per cent fall in values over the month, while Melbourne values experienced a larger 1.1 per cent fall.
Of the mainland capitals, the largest monthly decline was recorded in Adelaide where dwelling values dipped 2.4 per cent in October.
On a quarterly basis, most capital cities recorded a rise in dwelling values, with the largest capital gain being found in Darwin, which recorded 1.5 per cent growth.
According to RP Data’s research director Tim Lawless, the weak October result highlights how delicately balanced the Australian housing market is.
“Whether the October decline is a blip on the path to a recovering market, or a sign of further weakness is yet to be seen. Other indicators are suggesting the market has gathered some strength, with auction clearance rates holding firm around the 60% mark across the two major auction markets and owner occupier housing finance numbers showing steady improvements since February 2012, albeit from a very low base,” he said.
“Despite the cash rate being only 25 basis points higher than the emergency lows seen in 2009, we are yet to see a real improvement in consumer confidence or housing market transaction volumes.
“Until we see optimists outnumber pessimists in consumer confidence surveys, a recovery in the housing market is likely to remain precarious.”