Housing prices ease in January: Residex
The latest figures for the national housing market in January from Residex indicate a continued easing, with a 1.2% decline in the median national house price to a $424,500 median. There was a lesser 0.67% fall in the median unit price to a $395,500 median.
Residex chief John Edwards says there was little evidence of recovery.
House prices slipped 1.65% in Melbourne, 1.18% in Sydney and 0.32% in Perth.
"Prices continued to weaken in almost every capital city over January,” Edwards notes.
“Our data suggests we are moving beyond the bottom of the cycle, however the trend is not pronounced," he says.
The less affordable end of the market, along with house and land, remained weak.
"On an Australia-wide basis we do not look as if we are through the worst of the correction phase.
“In most capital cities, while we may have reached the bottom of the cycle, there is no strong movement towards positive territory," he says.
He said the Reserve Bank's decision not to cut rates last week was a “missed opportunity” to inject confidence among buyers and sellers.
"The property market is on a knife edge. A rate cut would have had an important impact on affordability and boosting confidence," he says.
“While Australia’s property market does not face the same risks as those that led to the collapse in US housing prices, we face continued headwinds including the high Australian dollar and the high cost of housing. We need to encourage home ownership otherwise we will arrive at a situation where the cost of rentals is unacceptably very high.” he says.
