In their market commentary this week ANZ Bank warn that despite a pick up in auction sales in the past week, dwelling prices continued to ease in seasonally adjusted terms across all capital cities, reflecting the sharp decline in consumer confidence in recent weeks.
Home prices posted the sharpest weekly fall in Adelaide, followed by Sydney, Melbourne and Perth- see the graph below:
ANZ also reported that auction sales regained some momentum in the past week, however clearance rates continued to ease from the strong clearance rates of early 2014.
While auction clearance rates remain historically elevated, clearance rates have been easing lower in trend terms across all capital cities except Adelaide for the past three months.
Looking ahead, ANZ expect housing market sales and price growth will continue to moderate, reflecting the recent weakness in consumer confidence.
However they report that strong underlying housing demand and investor appetite, combined with low interest rates, are likely to support housing market sales and prices in the medium-term.
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