Dwelling values in the NSW capital have dropped by 0.7 per cent in November, bringing the overall drop in values to 1.3 per cent over the quarter.
New data from CoreLogic’s November Hedonic Home Value Index shows that the median value of homes in Sydney fell to $904,041 as at 30 November 2017, a 0.7 per cent fall on the prior month.
According to CoreLogic head of research Tim Lawless, the drop in values over the quarter marks the greatest decline over a three-month period since March 2016. However, he outlined that while the rate of value decline has “gathered some momentum”, it remains “extremely modest”.
The only other state capital to record a drop in value was Darwin, which saw values drop by 0.4 per cent in the month (or 2.7 per cent over the quarter) to $432,774.
Notably, the drop brings the annual change in dwelling values in the Northern Territory capital to -5.5 per cent.
Dwelling values in Canberra rose by 0.9 per cent in the month, the greatest of any capital, followed by Hobart (0.6 per cent) and Melbourne (0.5 per cent).
The Tasmanian and Victorian capitals have seen a marked increase in values over the 12-month period, rising by 11.5 per cent (to $398,093) and 10.1 per cent (to $718,325), respectively.
Overall, national dwelling values held steady in November, with a 0.1 per cent fall in capital city dwelling values offsetting a 0.2 per cent rise in values across the combined regional markets of Australia.
For the quarter, Australia’s dwelling values tracked 0.2 per cent higher, while values rose by 5.2 per cent across the country for the 12 months ending 30 November.
The annual figure shows a tempering of values, following the May 2017 peak of 10.4 per cent growth.
Mr Lawless commented: “The diversity in capital city housing market conditions is highlighted by the rolling quarterly change in dwelling values, which range from a 3.3 per cent rise in Hobart to a 2.7 per cent decline in Darwin. However, considering that together these two cities account for less than 1.5 per cent of total housing stock in Australia, they have had little effect on the overall headline figures.”
Continuing, the researcher said: “On the other hand, softer housing market conditions across Sydney, which comprises roughly one-fifth of national dwelling stock (and approximately one-third by value), have a material influence over the headline growth trends.”
Mr Lawless suggested that the Perth housing market may have finally “bottomed out”, after the hedonic value report found that values for the three months to November rose by 0.3 per cent.
In addition, Mr Lawless noted that settled sales had risen in the WA capital, homes are selling faster and advertised stock levels had reduced by 12.7 per cent compared with last year.
He concluded: “If this is indeed the start of a recovery phase in the Perth housing market, it comes after dwelling values have fallen [by] 10.8 per cent since peaking in mid-2014.”