Perth was the worst performing capital city in the latest RP Data-Riskmark Capital City Home Value Index with the value of homes falling 2.7 per cent in August.
Perth was the worst performing capital city in the latest RP Data-Riskmark Capital City Home Value Index with the value of homes falling 2.7 per cent in August.
This compared to a national fall of just 0.2 per cent.
On a non-seasonally adjusted basis the index remained unchanged nationally in August, but the fall was worse in Perth where the index dropped 3.1 per cent.
RP Data-Riskmark's Hedonic Index is based on Australia's largest real estate database, which has recorded 236,799 dwelling sales in 2010.
The most recent month's index results are based on up to 40-50 per cent of the final sales volume.
It was worse news for the three months to August with the index falling 4.8 per cent in Perth.
The median house price in Perth was $460,000.
Managing director of Riskmark International Christopher Joyce said a number of factors could affect the value of house prices in the months ahead.
"We were not forecasting any further capital growth in the second half of 2010," he said.
"Recent data vindicates this thesis. In the first seven months of 2010, capital city dwelling values have accreted by 4.8 per cent in raw terms, which is in line with consensus expectations for disposable household income growth.
"If the resources boom combined with frisky consumer spending compels the RBA to lift the cash rate 2-6 times by end 2011, we would expect to see nominal dwelling values decline modestly."
But Mr Joyce said this is not a bad thing.
"Asset prices cannot always rise - the volatile sharemarket regularly subjects investors to savage swings."
CommSec Economist Savanth Sebastian said the figures reflect a cooling in the housing sector.
"It is not about to collapse," he said.
"Property prices are still up eight per cent on a year ago - in line with our long held view that price growth would moderate between 5-8 per cent over 2010."
Meanwhile, demand to build new homes unexpectedly fell sharply in August as fewer people sought to take out a mortgage, new data released today showed.
The Australian Bureau of Statistics said building approvals fell by a seasonally adjusted 4.7 per cent in August to 13,049 units, after a downwardly revised 0.1 per cent rise in the previous month.
Economists had expected the number of approvals to be unchanged from the previous month.
Separately, the Reserve Bank of Australia said growth in total credit rose by just 0.1 per cent in August for a slim 3.1 per cent increase over the year.
Total housing credit rose 0.6 per cent in the month, but for owner-occupiers it slipped to 0.5 per cent growth from 0.6 per cent in the previous month.
Demand for personal loans other than for housing, and business loans, both fell in the month.
Demand to build new homes unexpectedly fell sharply in August as fewer people sought to take out a mortgage, new data released today showed.
The Australian Bureau of Statistics said building approvals fell by a seasonally adjusted 4.7 per cent in August to 13,049 units, after a downwardly revised 0.1 per cent rise in the previous month.
Economists had expected the number of approvals to be unchanged from the previous month.
Separately, the Reserve Bank of Australia said growth in total credit rose by just 0.1 per cent in August for a slim 3.1 per cent increase over the year.
Total housing credit rose 0.6 per cent in the month, but for owner-occupiers it slipped to 0.5 per cent growth from 0.6 per cent in the previous month.
Demand for personal loans other than for housing, and business loans, both fell in the month.
