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A research analyst has assigned dollar values to the decline in national dwelling prices, bringing fresh context to the nationwide "correction" in the property market.
According to CoreLogic head of research Cameron Kusher, the 7.4% fall in value evidenced between the October 2017 peak and the end of March 2019 equates to a $40,590 decrease in dwelling values nationally.
“While a values percentage fall indicates how the market is fairing, seeing the actual value of the declines is a stark reminder of the actual losses,” said Kusher.
When examining the combined capital cities alone, the fall in value from their September 2017 peak is even greater at 9.2%, an approximate value loss of $59,478.
Kusher explained, “While the recent declines in markets like Sydney and Melbourne can be put in context of the significant increases over recent years, this is little comfort for home owners that purchased at or near the peak of the market.”
The combined regional markets have fared better with values declining by just 2.5% from their May 2018 peak, a $9,464 drop in value.
As far as specific cities go, Sydney has taken the hardest hit with values 13.9% lower than their peak, a $124,739 decline.
Kusher said that he expects the decreases to continue, but also made sure to highlight the opportunity afforded by the lower housing values.
“With mortgage rates tracking around the lowest level since the 1960s – and potentially moving even lower later this year – active buyers are back in the driver’s seat to take advantage of improved housing affordability and the low cost of debt,” he concluded.
