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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