By guest contributor, Robert Lauria, analyst, Atchison Consultants
Data recently released showed that house prices in every mainland Australian capital fell in the last week of September. Is this a sign of prices to come, or just a blimp on the horizon of the multi-billion dollar industry, or a correction of the lenient credit standards of the past?
According to Corelogic data over the past month*, the median house price in Melbourne has now fallen greater than that in Sydney, a fall of 4.4% compared to 4.1%.
Of the other major cities, Perth recorded a decline of 3.2%, while both Brisbane and Adelaide actually recorded increases of 0.4%. However, the combined five cities recorded a fall of 3.5% overall.
The effect is now widespread; not only are median prices falling in the major cities but they are also falling in regional areas. In non-metropolitan New South Wales, a fall of 1.3% was recorded, while falls of 0.2%, 0.6% and 0.3% were measured in non-metropolitan Victoria, Queensland and South Australia respectively. It is now a national correction.
*to 08 October 2018
The chart above shows that the median housing prices have now fallen 0.7% to the three months ending July 2018.