Pace of property value declines eased in January, new data shows

Pace of property value declines eased in January, new data shows

The rapid pace of property price declines appears to have slowed, with most capital cities recording only a moderate fall in values ​​during January, new data from PropTrack shows.

Across all markets, home values ​​fell 0.09 percent in January, according to PropTrack’s latest home price index update.

Prices fell in every capital city during the month, with the exception of Perth (up 0.06 per cent) and Darwin (unchanged).

Canberra (down 0.24 per cent) and Melbourne (down 0.22 per cent) recorded the biggest declines in property values.

Of the regional markets, regional WA fell the fastest (down 0.27 per cent) while regional South Australia continued to outperform (up 0.46 per cent).

Despite the rate of price declines slowing in January, PropTrack Senior Economist Eleanor Creagh said that several markets have experienced a particularly rapid rate of decline over the past year.

“Since their respective peaks, house prices have fallen at the fastest pace in more than a decade in Sydney, Brisbane and Hobart,” Ms Creagh said.

“Canberra house prices have recorded both the fastest and deepest decline in more than 10 years.”

City classification

Property values ​​in Sydney recorded a 0.06 per cent fall in January and are now down 7.27 per cent over the past year and 7.51 per cent from their peak.

Melbourne prices fell 0.22 percent in January and are now 5.79 percent below their January 2022 level and 6.42 percent below their March 2022 peak.

Brisbane recorded a 0.07 per cent drop in January; prices have 0.24 percent lower over the past
year and 3.76 percent below their April peak.

Perth property values ​​rose 0.06 per cent in January and 3.1 per cent over the past year, and are currently 0.5 per cent below their October peak.

Darwin values ​​were unchanged in January and remain at peak levels, up 1.5 per cent from a year ago.

Adelaide values ​​fell 0.14 per cent in January and are currently 0.21 per cent below their October peak, but remain 7.94 per cent higher than they were 12 months ago.

Hobart property values ​​fell 0.05 per cent in January, they are currently 2.88 per cent below their April peak and 1.46 per cent lower than a year ago.

Prices in Canberra fell 0.24 per cent in January and are now 5.59 per cent below their March peak and 3.82 per cent lower than a year ago.

CoreLogic also reports slowdown

CoreLogic’s national Home Value Index (HVI) also shows a slowdown in the rate of declines.

The 1 percent decline recorded in January was a slight improvement on the 1.1 percent decline recorded in December and the smallest month-on-month decline since June 2022.

Tim Lawless, director of CoreLogic research, said there were clear signs that the downturn was losing steam.

“The quarterly trend in housing values ​​clearly indicates a slowing of the rate of decline across most regions, but at -1 per cent over the month and -3.2 per cent over the rolling quarter, national housing values ​​are still falling quite rapidly compared to to previous downturns,” said Mr Lawless.

The most notable relief in impairments can be seen in the prestige markets, Mr Lawless added.

“While this trend of improving conditions across premium markets is not evident in all cities, it is most evident in Sydney’s detached house market,” he said.

“Quarterly declines in this market segment decreased from -7.7 per cent in the three months to August, to -3.9 per cent in the three months to January.

“The improvement may reflect more buyers taking advantage of wider price declines in the premium sector, where home values ​​are down -17.4 percent since peaking in January 2022.”

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