New data shows that national dwelling values fell over the month of May, taking the annual change into the negative for the first time since October 2012.
The CoreLogic Home Value Index showed that the national dwelling value had dipped by 0.1 per cent over May which made the annual change -0.4 per cent.
Combined, the capitals had a drop of 1.1 per cent in value, while combined regions had growth of 2.2 per cent, which resulted in the annual change of 0.4 per cent.
May was the eighth consecutive month-on-month fall since the national market peaked in September last year.
Commenting on the May results, CoreLogic’s head of research, Tim Lawless, said that the negative growth was a symptom of weakening conditions.
“The negative headline growth rate is a symptom of weakening housing conditions across the capital cities, led by Melbourne and Sydney where previously capital gains were national leading,” Mr Lawless said.
The news wasn’t all negative and regional markets went up, offsetting a larger decline nationwide.
“The combined regional markets have helped to offset a broader decline, with dwelling values consistently rising, albeit at a much lower pace relative to the growth seen in Sydney and Melbourne over the previous growth phase,” the head of research said.
Melbourne has taken over from Sydney as the weakest performing capital city for the month with a drop of 1.2 per cent, while Hobart is the best performing city with 3.7 per cent growth.
Annually, Sydney, Perth and Darwin all experienced drops in dwelling values at 4.2 per cent, 1.8 per cent and 7.9 per cent, respectively.
The rest experienced growth, with Hobart having the largest growth at 12.7 per cent, followed by Canberra at 2.3 per cent, Melbourne at 2.2 per cent, Brisbane at 0.9 per cent and Adelaide at 0.6 per cent.
The May results confirmed that the market conditions are now following a new trend.
“Regional markets are outperforming the capitals, affordable housing options are showing stronger conditions and the previously top-performing regions are now among the weakest,” Mr Lawless said.