An analysis of price trends in three segments of the housing market by CoreLogic’s research analyst, Cameron Kusher, has revealed that the fall in residential property prices across the upper quartile (most expensive 25 per cent) has begun to slow following a period of sharp declines.
Mr Kusher reported that from the market peak to the end of May 2019, national home values fell by 1.4 per cent across the most affordable quartile of the housing market, 6.6 per cent across the middle market (middle 50 per cent), and 11.6 per cent across the upper quartile of the market.
The falls were most pronounced across Australia’s combined capital cities, where values fell by 5.1 per cent in the lower quartile, 8.3 per cent in the middle market, and 12.4 per cent in the upper quartile.
The lower quartile and middle market suffered mild declines of 1.2 per cent and 1.6 per cent, respectively, across combined regional markets, while dwelling values slumped 6.7 per cent in the upper quartile.
However, according to Mr Kusher’s analysis, the home price slide across the most expensive segment of the market has been slowing, with the 11.6 per cent annualised fall reported in May, the smallest annual decline since December 2018.
“After having seen much larger corrections than the other two segments (following a larger growth phase), the most expensive segment of the market is seeing its rate of decline slow,” Mr Kusher observed.
“This is a trend that has played out before whereby premium housing values fall the fastest initially but also sees the falls cease earlier than other market segments.”
Mr Kusher added that the slowing of the decline in the value of dwelling prices in the upper quartile, was part of a broader recovery in the housing market.
“It is still early days, but with the housing market expected to trough in late 2019, the premium housing sector may find a floor first and start to show some level of recovery before the other segments,” Mr Kusher added.