Perth house prices fall 1%

Multiple public holidays in April are considered a likely contributer to a soft housing market for the month, with Perth house prices slipping into negative territory again amid a slowdown across the country.

Perth dwelling values fell by 1 per cent last month with a median of $472,200, the latest CoreLogic RP Data report found, with the figure now 2.4 per cent lower in the three months to April and down 6 per cent year on year.

On a national scale, dwelling values increased by 0.1 per cent, representing the slowest month-on-month growth since December 2015.

But CoreLogic head of research Tim Lawless said it was too soon to call a peak in the market after only one month of soft results.

“April, in particular, coincides with seasonal factors including Easter, school holidays and ANZAC day long weekend,” he said.

“The softer results should also be viewed against a backdrop of an ever-evolving regulatory landscape, which is firmly aimed at slowing investment and interest-only mortgage lending.

“Testament to this is mortgage rates which have been edging higher, particularly for investors and interest-only loans, as well as rental yields which have been hovering around record lows.

“The higher cost of debt, as well as stricter lending and servicing criteria, has likely dented investment demand over recent months.”

Sydney prices were flat at a median price of $860,000 for the month, while Melbourne prices were up just 0.5 per cent to $650,000.