CoreLogic’s daily dwelling values index, which measures price changes across the five major Australian capital city housing markets, fell another 0.30% in the week ended 15 December.
It was the 32nd consecutive weekly fall. The pace of decline has also accelerated, averaging -0.28% over the past four weeks versus -0.23% in the four weeks prior:
Pace of decline accelerating into Christmas.
At the halfway point in December, dwelling values at the 5-city aggregate level have fallen 0.62%, led by the three largest capital cities. By contrast, values in Adelaide and Perth have risen slightly:
Two-speed housing market in December.
The quarterly pace of decline is 3.5% at the 5-city aggregate level, led by Brisbane (-5.3%), Sydney (-4.2%) and Melbourne (-3.0%). By contrast, Adelaide (-0.8%) and Perth (-0.5%) values are holding up well:
‘Big three’ capitals lead house price decline.
Dwelling values are now down 8.3% from their peak at the 5-city aggregate level, lead by Sydney (-12.1%), Brisbane (-8.9%) and Melbourne (-7.9%):
Sydney still the ‘biggest loser’.
The Reserve Bank of Australia’s (RBA) 3.0% of interest rate hikes is the clear driver of Australia’s housing correction. As shown in the next chart, values at the 5-city aggregate level began falling shortly after the RBA’s first 0.25% rate hike in early May:
RBA rate hikes delivered house price fall.
Last week’s 0.25% interest rate hike by the RBA, which is expected to be followed up with another in February, will ensure that Australian house prices continue to fall.
