Australia’s property downturn has continued into the new year — with the national value, on average, dropping 1 per cent last month.
Since peaking in October 2017, the median value has fallen 6.1 per cent to $528,553, according to the most recent figures from property analysts CoreLogic.
Tighter lending conditions and “a further dent to confidence” are expected ahead of the federal election and banking royal commission’s final report — to be released publicly next Monday.
“This is the new normal,” Tim Lawless, CoreLogic’s head of research, told ABC News.
“For prospective borrowers, it’s become much harder to obtain finance if they’re on high debt-to-income ratios, or have a track record of large expenses.”
“Tight credit conditions, weakening consumer sentiment, less domestic and foreign investment and higher levels of housing supply are the primary drivers of the worsening conditions.”
Sydney and Melbourne experienced the weakest conditions once again, with values falling by at least 1 per cent each month since November 2018.
The latest results take Sydney’s median home value back to where it was two-and-a-half years ago (July 2016), and Melbourne dwellings have reverted to their January 2017 values.
Hobart remains the best performing market (from a seller’s perspective) with prices rising 7.4 per cent in the last year to a median of $457,785.
However, Tasmania’s capital is showing signs of slowing down, recording a 0.2 per cent fall in values in January.
Every capital city, except for Canberra, saw a fall in their median values last month.
More to come.