National house prices up in December

Perth housing values remained flat during January in contrast to most other capital cities, which experienced strong growth in December to finish out 2019 on a positive note, according a report from CoreLogic.

The latest monthly data means house prices in Perth have fallen by 0.1 per cent for the quarter and by 6.8 per cent for the past year.

Perth housing values continue to remain 21.4 per cent lower than their mid-2014 peak.

Meanwhile, Sydney and Melbourne continue to drive the recovery, with values for each city rising 5.3 per cent over the year.

Overall, national housing values have risen by 2.3 per cent in 2019 and by 1.1 per cent over December.

CoreLogic head of research Tim Lawless said the monthly gain was a soft result relative to price gains in October and November.

“This would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer,” he said.

“The positive year-end results mask what has been a year of two distinct halves; we saw capital city dwelling values fall by 3.8 per cent over the first six months of 2019 and then rebound by 7 per cent over the second half of the year.

“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election.”

In regional Australia, house values were weakest in southern Western Australia and Queensland, where demand for housing remained low due to weak economic conditions and persistent drought, the report found.

House values in regional WA fell by 11.8 per cent over the past 12 months and remain 37.9 per cent lower than their peak.