Housing price in Australia has recorded a sixth-month slump in a row. Property analyst firm, Corelogic's national 'Home Value Index' monthly report revealed that across the nation dwelling values fell by a further 1.2 percent in October from a month earlier, with every capital city and nearly every region recording a drop in housing values.
Among the capital cities, Brisbane saw the most pronounced fall of 2 percent, while the pace of falls continued to ease across Sydney and Melbourne. New South Wales (down 1.7 percent) and Victoria (down 1.4 percent) fell the most, although prices rose slightly in South Australia (up 0.1 percent). CoreLogic’s Research Director Tim Lawless said it is probably still too early to claim the worst of the decline phase is over.
The Reserve Bank of Australia has increased rates six times from May to 2.6 percent. It is scheduled to unveil the monthly monetary decision with a further 0.25 percentage point increase widely expected.
The Corelogic data also revealed that the prices of houses continued to fall at a faster rate than the prices of the unit across most regions. "With borrowing capacity being hit hard as interest rates rise, it's likely more housing demand has been diverted towards more affordable sectors of the market," Lawless said.
