National dwelling values dropped for the eleventh consecutive month as the national housing market continues to correct, according to CoreLogic’s national home value index.
The report found the change in dwelling values nationally was -0.3% over the month of August taking it to -2.0% over the last 12 months.
“Weaker housing market conditions can be tied back to a variety of factors, foremost of which is the tighter credit environment which has slowed market activity, especially amongst investors,” says Tim Lawless, CoreLogic’s head of research.
“Fewer active buyers has led to higher inventory levels and reduced competition in the market. Collectively, these factors have been compounded by affordability challenges, reduced foreign investment and a rise in housing supply.”
How are the capitals performing?
Regional areas are performing better than capitals overall, with the combined regional drop in August 0.2% as opposed to the combined capitals drop of 0.4%. Across the capitals there are some markets still showing growth.
|Capital city||Change over past month||Change over past 12 months||Median dwelling value|
What about renting?
Sydney renters have seen the biggest decrease in rental rates, with a drop of 0.9% over the past 12 months.
All other capitals have seen rents increase at least 3% over the past 12 months, with rents in Hobart 9.7% higher and rents in Canberra up 5%.