National home values tank in October

By Kay Rivera | 02 Nov 2018

On Thursday, CoreLogic reported that national housing values continue to slide, with housing activity showing further signs of weakening.

CoreLogic Head of Research Tim Lawless pointed to tighter credit conditions as one of the main drivers of the slowdown.

The country saw home values’ annual decline across the national index reach 3.5%. This marked the weakest macro-housing market conditions since February 2012, and resulted to the hedonic home value index register a 0.5% dip in dwelling values nationally in October.

On a quarterly basis, dwelling values currently dropping across both the combined capital city regions and combined regional areas of Australia by 1.6% and 0.7%, respectively.

“With such broad-based weakness in housing market conditions, it’s clear that tighter credit availability is acting as a drag on housing demand and impacting adversely on the performance of housing values across most areas of the country” Lawless reiterated.

Described as places where investment buyers have been the most concentrated, supply additions have been the highest and where housing affordability is the most stretched, Australia’s two largest cities still exhibit the weakest conditions among markets.

Sydney values are down 7.4% over the last year, while Melbourne values tracked lower by 4.7% over the same period.  There was also downturn in Perth and Darwin, with prices sinking 3.3% and 2.9%, respectively, over the previous year.

Dwelling values in remaining cities were observed to be hiking, but the pace of growth is declining.

The regional housing markets, meanwhile, posted varied performance. Regional Tasmania was the only broad region nationally where dwelling values are recording double digit growth (+11.4%).  Both Hobart and regional Tasmania continue to record strong housing market conditions, thanks to robust housing demand and a shortage of supply.

Regional Victoria’s conditions also look rosy as demand continues to pull away from Melbourne towards the more affordable cities peripheral to the city’s metropolitan area.

 Finally, condition remains tough in Western Australia albeit revealing some renewed momentum. Values decreased by 6.5% over the past twelve months.

Top Suburbs : alexandria , ferntree gully , bligh park , redcliffe , windale


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here