The CoreLogic Hedonic Home Value Index results for May 2019 have been released this morning, showing a continuing fall of Australian house prices, but the decline has slowed.
CoreLogic is a research firm that monitors residential and commercial property prices across Australia.
Australia House Prices Keep Falling
CoreLogic said that dwelling values across Australia fell further over May, dropping another 0.4% nationally.
But, there was a mixed result across the board.
In Australia’s largest city, Sydney house prices dropped by 0.5%. over the month and have fallen 10.7% over the past 12 months.
Melbourne house prices were fairly similar, the month of May 2019 showed a decline of 0.3% and the past year’s fall represents 9.9%.
Brisbane house prices were down 0.5% in May but the annual decline is only 2.3%.
Adelaide house prices increased by 0.2% and have actually risen by 0.4% over the last 12 months.
However, Perth house prices dropped 1% in one month and show a fall of 8.8% in the past year.
Darwin house prices fell by a painful 1.6% in May 2019, the annual decline has been 8.6% according to CoreLogic.
Hobart house prices were down 0.4% for the month, but still show a gain of 3.4% over the past year.
Canberra house prices fell 0.2% in May 2019 but are up 2.4% over the the last 12 months.
What Does This Mean?
Quite a mixed bag. The resource-focused cities of Perth and Darwin continue to suffer from large price declines.
Melbourne and Sydney house prices continue to fall but the decline has reduced due to the combination of factors of the Liberal election win, the APRA interest rate buffer adjustment and potential RBA interest rate cuts.
The property decline slowdown is positive news for many ASX shares including REA Group Limited (ASX: REA), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Boral Limited (ASX: BLD).
I’m still saving a house so I hope the property market isn’t going to dramatically recover, but a property cash wouldn’t have been good for anyone – so I’m glad that seems to be off the cards.
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