Isolated illustration of a house surfing downwards on a declining graph

Contagion: Australian Property Price Falls Spread

FOMO (the fear of missing out) looks to be turning to FONGO (the fear of not getting out) in every capital city save Hobart.

While the rate of price falls have slowed in Sydney and Melbourne, home prices in both cities continued to slip. And they now have plenty of company.

Data from CoreLogic saw a 0.6% drop in national property prices in March, with a drop of 0.8% and 0.9% decline recorded in Melbourne and Sydney respectively.

There was no change in Canberra’s property prices over March, but prices in Hobart climbed by 0.6%.

Of the 46 capital city sub-regions monitored by CoreLogic, only seven of these regions managed to evade annul declines.

A massive shift when compared to this time last year when 30 regions escaped declines and actually held positive territory.

The weakening prices of average Australian homes over March was the smallest month-on-month drops since October.

‘While the pace of falls has slowed in March, the scope of the downturn has become more geographically widespread,’ CoreLogic analyst Tim Lawless said.

Higher rental supply and declining rental demand

CoreLogics figures from Monday, showed that rent prices fell across capital cities over the last 12 months, losing 0.1% for the first time since May 2005, CoreLogic began recording the metric.

AAP reported CoreLogic home values as follows:

CORELOGIC HOME VALUES:

Sydney: Down 0.9% in March, down 3.2% in past three months

Melbourne: Down 0.8% in March, down 3.4% in past three months

Brisbane: Down 0.6% in March, down 1.1% in past three months

Adelaide: Down 0.2% in March, down 0.5% in past three months

Perth: Down 0.4% in March, down 2.9% in past three months

Hobart: Up 0.6% in March, up 1.2% in past three months

Darwin: Down 0.6% in March, down 3.9% in past three months

National: Down 0.6% in March, down 2.3% in past three months.’

Mr Lawless left Australian rental investors with a somber reminder, saying ‘Sluggish rental conditions are likely the result of higher rental supply coupled with a reduction in rental demand’.

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The Australian Tribune Editorial

The Australian Tribune Editorial

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  1. These falling figures are nothing really, when you consider that the prices are coming off an over heated, indecently and outrageously over inflated price level to start with. For a multitude of reasons, the real estate prices rose over the past decade or more to the unrealistic level they’re cooling from now.
    Silly people wanted to keep paying the ludicrous, ever increasing prices, so no one aught to be surprised if some of them go bust while the prices fall back.
    The other point to realise is that for the most part, only Melbourne and Sydney prices were the ones over the top. Perth & Darwin had their boom and bust from the mining boom (like regional Mackay) and now the two most populous cities in Aust. are going to have to cop their turn of pain from a false high!
    If people must live in big cities, this is the game that needs to be played out from time to time.
    I wouldn’t be surprised if they drop another 20% yet, which will only go to show how silly people are when it comes to buying houses/property. That’s the reality.