Perth's median home values have dipped 1.9 per cent over the last quarter to become the second worst performing capital city behind only Brisbane, a new report shows.
Perth's median home values have dipped 1.9 per cent over the last quarter to become the second worst performing capital city behind only Brisbane, a new report shows.
The median price for Perth homes now stands at $465,000, according to RP Data Rismark's Hedonic Index.
Across the nation, capital city home prices were up just 0.8 per cent on a year ago - the slowest growth rate in 23 months, RP Data said.
A near double interest rate hike in November 2010 combined with numerous natural disasters has conspired to make the last three months difficult ones for Australia's housing market.
In the capital cities, home values are down 1.3 per cent in seasonally-adjusted terms.
The rest of state areas are also off -0.9 per cent (seasonally adjusted).
The weakness has been especially acute in Perth which fell 1.9 per cent.
Prices rose in just three of the seven capital cities in February with Canberra prices up 1.9 per cent, followed by Sydney up 0.6 per cent, and Melbourne up 0.1 per cent).
"Recent RBA analysis also shows that repossessions have been highest in Perth and South East Queensland, which helps explain the poor performance in those states," RP Data senior research analyst Cameron Kusher said.
Mr Cusher said Perth's home values remained 0.7 per cent below December 2007 levels.
February's index result suggests that Australian home values continue to tread water despite robust household income growth and there was little change from January's figures, which were heavily affected by natural disasters (-1.5 per cent seasonally-adjusted or -0.7 per cent raw).
In the capital cities, RP Data-Rismark recorded flat dwelling values, 0.0 per cent seasonally adjusted or a slightly stronger +0.7 per cent in actual raw terms.
The 'rest of state' areas, which account for the 40 per cent of homes not located in the capitals, also displayed some improvement during February with house values rising by 0.5 per cent seasonally-adjusted (+0.3 per cent raw).
Commsec released analysis of the data and said, "It is important to highlight that while the housing sector is cooling it is not about to collapse in a heap."
Overall CommSec said it expects house prices to consolidate over the next few months, but for the year as a whole we would expect prices to lift by 5 per cent.
The Reserve Bank is likely to remain on the interest rate sidelines in the near term, while healthy jobs growth, rising population and sliding rental vacancy rates will support housing activity in the medium term.