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The median national dwelling value dropped to $556,384 in June, marking the 0.2% decline from a month before and a 0.8% contraction from the same month last year. This marks the ninth consecutive month-on-month fall in national home values, according to the latest Home Value Index released by CoreLogic. Results also showed that the figure is 1.3% below its September 2017 market peak.
The median dwelling value of combined capitals dropped by an annualised 1.6% to reach $654,366. However, Hobart still posted a strong 12.7% growth. Regional areas also posted a modest growth of 2.2%.
CoreLogic research director Tim Lawless said tighter finance conditions and less investment activity have been the primary culprit for the weaker market conditions – and they don’t expect both factors relaxing in the second half of 2018 despite APRA lifting 10% from its investment speed limit.
Nevertheless, he pointed out that national dwelling values remain 32.4% higher than five years ago. “This highlights the wealth creation that many home owners have experienced over the recent growth phase, but also the fact that recent home buyers could be facing negative equity,” he added.
“A surge in first home buyer activity has helped support demand across the more affordable price points in these cities,” Lawless said.
