Australia’s capital cities saw a dip in home prices in May, according to a report last week from CoreLogic Australia, a property data and analytics company.
In May, versus April, the company reported a fall of 1.1% in prices of homes in capital cities including Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin and Canberra. The median home price for these cities was A$630,000 (US$476,000).
Declines in home values in Sydney, which saw a 1.3% drop, and Melbourne, which was down 1.7%, were the biggest reason for the month-on-month downturn among the capital cities, CoreLogic reported. Average home prices in these cities were A$872,000 (US$658,000) and A$665,000 (US$502,000), respectively.
Conditions have been cooling over the last few months, according to Tim Lawless, CoreLogic’s Head of Research.
“The past three months has seen capital city dwelling values rise by a modest 0.4%, with four of the eight capitals recording a fall,” Mr. Lawless said in a statement. “Over the past three months, Sydney dwelling values are unchanged while Melbourne values have increased by 0.7%.”
The company also noted that the winter month of May is historically one of the weaker months of the year.
However, in looking at the year-over-year prices, values in the capital cities are up 8.3%, according to the data. Home sales in the major cities of Sydney and Melbourne have had “significant gains over the current growth cycle to date,” the report said. Prices are up more than 11% in both cities for the year.
Meanwhile, the number of sales in the capital cities was down nearly 7% from this time last year, according to CoreLogic.
“It appears that housing activity has eased,” Mr. Lawless said. This “is attributable to a range of factors including affordability constraints, tighter credit policies, rising mortgage rates and a downturn in consumer sentiment towards housing.”
— Mansion Global (@MansionGlobal) May 10, 2017
Follow Mansion Global:Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: firstname.lastname@example.org