November’s house price results from CoreLogic posted a 1.0% decline nationally and a 1.1% fall across the five major capital city markets.
CoreLogic’s head of research, Tim Lawless, noted that the pace of decline has “been consistently moderating since the national index dropped by 1.6% in August… mostly emanating from the Sydney and Melbourne markets”:
“Three months ago, Sydney housing values were falling at the monthly rate of 2.3%. That has now reduced by a full percentage point to a decline of 1.3% in November. In July, Melbourne home values were down 1.5% over the month, with the monthly decline almost halving last month to 0.8%”, Lawless said.
While the pace of decline has certainly moderated, the monthly fall in November remains at the upper end Australian house price corrections:
Recent monthly falls have been some of the sharpest on record.
Indeed, the current house price correction has been running for seven months at the 5-city aggregate level, and the cumulative 7.6% of losses are the steepest rate of decline in CoreLogic monthly records dating back to 1980:
Steepest house price correction on record.
Soon, the current price correction will overtake the 2008-09 (-7.8%) and 1982-83 (-8.7%) episodes and move into second place of Australian house price busts.
Then it is only a matter of time before the record 10.7% decline posted over 21 months between 2017 and 2019 is overtaken.
When this housing correction has finally run its course in 2023, it will very likely go down as Australia’s largest and steepest in modern history.
