National dwelling values declined by 1 per cent over the first month of the year, taking the cumulative decline in national dwelling values to 6.1 per cent since the market peaked in October 2017, new CoreLogic data shows.
The national index has fallen over 13 of the past 15 months and national dwelling values are now back to levels last seen in October 2016, according to CoreLogic’s January 2018 hedonic home value index.
The index found that the weakest conditions are in Sydney and Melbourne, where values have fallen by at least a full per cent each month since November last year.
Head of research at CoreLogic, Tim Lawless, said both markets have seen an acceleration in the rate of decline over the past three months.
He said that Sydney dwelling values were down 4.5 per cent and Melbourne values were 4.0 per cent lower to January 2019.
“The rolling quarterly fall has been at the fastest pace since the downturn commenced,” said Mr Lawless.
“The latest results take Sydney dwelling values back to levels last seen roughly two and half years ago. In Melbourne, where the market peaked four months later than Sydney, dwelling values are back to January 2017 levels.”
Mr Lawless said that while most of the attention is on Australia’s two largest cities, weaker housing market conditions are evident across most of the capital cities.
“Every capital, apart from Canberra, recorded a month-on-month fall in dwelling values and only Hobart and Canberra recorded a rise in values over the past three months.
“While values aren’t falling across every broad region of the country, it’s clear that even within the areas where values are rising, the market has lost steam.”
Mr Lawless said the only regions where the annual change in dwelling values has improved are Darwin, regional Tasmania and regional NT.
“The regional markets are generally showing healthier conditions relative to the capitals.
“The combined regional index was down 0.6 per cent over the three months ending January while the combined capitals index was down 3.3 per cent over the same period.
“Three of the seven broad ‘rest-of-state’ regions recorded a decline in values over the past three months. Regional NSW values were 1.3 per cent lower, while regional Queensland values were 0.3 per cent lower and regional WA values were down 0.8 per cent.”