Data Snapshot: Dwellling Prices - Cooling Continues

• The cooling in national dwelling prices continued in July. The CoreLogic eight-capital city combined dwelling price index fell 0.6% in the month, the ninth consecutive monthly decline and the largest decline since February 2016.

 

• It took the annual decline in capital city dwelling prices to 2.4% in July, from a decline of 1.6% in June. The tightening in lending conditions is easing demand for housing, as is the raft of regulatory measures over recent years. High levels of household debt and slow wages growth have also weighed on housing demand.

 

• In July, the fall in dwelling prices was led by the Sydney and Melbourne markets, where investors have been most active and which had experienced the largest run-up in prices over the last few years.

 

• We expect the moderation in dwelling prices to continue. Lower auction clearance rates and softer lending suggest further weakness in prices. However, there are solid fundamentals which should temper the housing downturn, including strong population growth and the healthy labour market.

 

Please see the attached report for more information.

 

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