Weakness continues for Perth home values

Perth’s median house price fell by 1.1 per cent in January, contributing to a 5.6 per cent fall in the last 12 months, according to the latest data from market analysts CoreLogic.

CoreLogic said Perth's median for houses was $465,120 at the end of January, while the median for units was $363,172.

Weakness in residential real estate markets extended across the country in the first month of 2019, with all of Australia’s capital cities experiencing median home value declines in January, CoreLogic said.

Darwin median prices were down 1.7 per cent to be the weakest market in the nation, closely followed by Melbourne, where prices fell by 1.6 per cent.

On an annual basis, Perth was Australia’s third-weakest performing city, following sputtering markets in Sydney (9.7 per cent fall) and Melbourne (8.3 per cent fall).

Median house prices in regional WA were slightly weaker over the past 12 months, falling by 7 per cent.

CoreLogic head of research Tim Lawless said low levels of activity made January generally a difficult month to read housing markets, but the declines were in line with quarterly trends in most cities.

“Tight credit conditions, weakening consumer sentiment, less domestic and foreign investment and higher levels of housing supply are the primary drivers of the worsening conditions,” Mr Lawless said.

Mr Lawless said there were 16 per cent more homes available for sale in Australia at the end of January as compared to the same time last year, with total listing numbers up 34 per cent in Melbourne and 24 per cent in Sydney.

“Heightened levels of homes available for purchase inevitably pushes more power back to the buyer,” he said.

“Buyers are now in a position where they can negotiate harder, take their time in making a purchase decision and be selective in finding a home that is right for their budget and lifestyle.

“On the other hand, vendors are clearly facing more challenging selling conditions.”

The continued weakness in housing markets led to average discounts of 6.1 per cent across capital cities over the three months to the end of January, while the median selling time has risen to 44 days.

Mr Lawless said the January results foreshadowed a challenging 12 months for housing markets across the country.

“There may be a further dent to confidence as we approach the federal election and housing finance conditions are likely to remain tight after the hand down of the Hayne Royal Commission report, which is due on Monday,” he said.