Australia: Shallow price correction in dwellings continues - Westpac

Matthew Hassan, Research Analyst at Westpac, notes that Australia's housing markets continue to correct as the CoreLogic home value index, covering the eight major capital cities, dipped 0.3% in April marking the sixth successive monthly decline.

Key Quotes

“Prices nationally are down 0.3%yr, the first annual fall since Oct 2012.”

“The most disaggregated price data suggests about a third of properties nationally are experiencing annual price declines – a more widespread correction than in 2015-16 but a much lower incidence than seen during the bigger price corrections in 2011-12, 2008-09, the mid 2000s and the mid-90s when well over half of properties experienced falls.”

“The dwelling-type breakdown continues to show more pronounced weakness for houses, prices down 0.4% in the month and –1.0%yr. Unit prices were up slightly in the month and 1.9%yr.”

“Overall, the April update extends and deepens the price correction. While decline nationally remains shallow it and narrowly-based compared to major corrections in the past is has spread somewhat and is showing few signs of moderating in the weakest sub-markets.”