Hobart leads the nation's continued house price decline in April: CoreLogic

Hobart leads the nation's continued house price decline in April: CoreLogic
Hobart leads the nation's continued house price decline in April: CoreLogic

For the first time in eight months, Hobart saw its house prices decline, according to CoreLogic's home value Index for April.

It was a sharp turn as well.

The Tasmanian capital's house prices dropped -1.2 percent over the month of April, the biggest decline across all capitals.

The dwelling value decline was offset by the performance of the apartment market, which saw a 0.3 percent increase.

Hobart's last house price decline was over August last year when they saw a modest -0.2% decline.

Dwelling values across The eight capitals combined dropped a further 0.5% to be down -7.2% over the last 12 months and -7.9% lower since peaking in September 2017.

The biggest loser was Darwin, whose -1.2% decline in dwelling values was driven by houses which dropped -2.3% over April.

Canberra was the only capital with dwelling values up in April.

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Hobart leads the nation's continued house price decline in April: CoreLogic

It was a softer April for Melbourne, who saw their house prices decline -0.7%.

The housing market had taken a sharper downturn that Sydney and had seen declines over more than 1% for the last five months before April. Over the last six months, Melbourne's houses have dropped xxx%, compared to Sydney's xx%.

Sydney performed worse than Melbourne across its housing and unit markets over the month.

Sydney houses declined a further -0.8%.

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Hobart leads the nation's continued house price decline in April: CoreLogic

Sydney's median house price is now $880,396, around $200,000 down from its $1.079 million median peak in August 2017 before prices started declining. Melbourne's median house price sits at $712,920, $120,000 down from its $832,735 peak in January 2018.

CoreLogic's head of research Tim Lawless says the decline in housing market conditions is easing.

“The improvement in the rate of decline is attributable to an easing in the market downturn across Sydney and Melbourne where values were previously falling much faster.

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Hobart leads the nation's continued house price decline in April: CoreLogic

"In December last year, Sydney dwelling values were down -1.8%, with the pace of month-on-month falls progressively moderating back to -0.7% in April. Similarly, Melbourne values were down -1.5% in December, with the rate of decline improving to -0.6% in April."

"Other property market insights supporting a subtle improvement in housing market conditions include a rise in mortgage related valuations activity (as indicated by CoreLogic platform data), an improvement in ABS household finance data for February, and the fact that auction clearance rates are holding around the mid-50% range across the major auction markets.

“While none of these indicators could be described as strong, the current trend in the data implies that housing market conditions may have moved through the worst of the downturn.

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Price Decline Corelogic

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