This week the Australian Bureau of Statistics reported on their national house price index.
Sure house prices dropped a little, but despite all the property pessimists around those pesky properties refused to behave – they just wouldn’t crash would they?
Overall capital city established house prices were down 1.2% for the September quarter and down 2.2% for the year.
All cities recorded slight falls in property values, you can find the full results here. You can see what’s going on in your state by clicking here
The largest falls for the quarter were recorded in Brisbane (down 2.5% for the quarter), Canberra (down 2.0%) and Melbourne (down 1.7%).
If we look at what’s happened since property prices peaked, the total peak to trough falls as reported by the ABS nationally suggest we are now down 3.3% in total as an average for the capital cities.
Perth is recording the largest falls of 6.9%, followed by Brisbane (down 6.6%),Darwin (down 5.0%), Melbourne (down 3.8%), Hobart (down 3.6%), Adelaide(down 3.5%), Canberra (down 2.9%) and Sydney has performed the best (down 0.6%).
Of course, some areas have performed much better than others and in general higher price properties have fallen more in price than the middle and lower priced properties.
These results do not cover off the regional locations, where in some cases house price falls have been significant.
Overall our housing markets peaked in March last year and I see more falls to come, yet there is some evidence this week from RPData that the rate of weakening is starting to slow up.
The drop in interest rates this week was welcome, and definitely won’t harm our property markets, but it will take more than one or two cuts in interest rates to bring back consumer confidence.
At least what the rate cuts have done is take away the fright of rising interest rates.
Think about it…it really wasn’t that long ago that most of us were expecting interest rates to rise significantly over the next year or tow and that’s why we started squirreling away our dollars.
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