01/08/2018 - 11:30

House price decline continues in July

01/08/2018 - 11:30

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Perth house prices suffered their largest monthly decline in almost a year, after slipping 0.8 per cent in July, according to the latest data from CoreLogic.

House price decline continues in July
Perth prices fell 0.8 per cent in July. Photo: Gabriel Oliveira

Perth house prices suffered their largest monthly decline in almost a year, after slipping 0.8 per cent in July, according to the latest data from CoreLogic.

Not since August last year, when Perth’s house prices also fell 0.8 per cent, has the local housing market declined by as much.

So far in 2018, house prices in Perth have fallen in five of the seven months, including the past three, with a slight increase in March and no change in April.

On an annual basis, Perth prices were off 2.3 per cent, with the median value sitting at $457,274.

 

Nationally, house prices fell 0.6 per cent in July, with Sydney (-0.6 per cent) and Melbourne (-0.9 per cent) leading the decline with Perth.

Annually, Australian house prices fell 1.6 per cent.

CoreLogic head of research Tim Lawless said he expected declines to continue across the country.

“We can’t see any factors that may halt or reverse the housing market’s trajectory of subtle declines over the second half of 2018,” he said.

“The availability of housing credit has been a significant factor contributing to this slowdown, however, there are a variety of hurdles contributing to slower conditions.

“Higher housing supply is another factor that is likely to weigh on some sectors of the market.

“Unit construction remains well above average across most states.

“Migration trends have also changed, which is likely to have both positive and negative impacts on housing demand.”

CommSec senior economist Ryan Felsman said a recovering mining sector should flow through to Perth’s property market.

“The recovery in the mining sector should eventually support prices in Western Australia, Queensland and the Northern Territory as job opportunities are created,” he said.

       

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