The decline in house prices throughout Australia appears to be easing, with the latest results showing that the contraction in national dwelling values reached in June reached its slowest pace for any month on record for the past fifteen months.
Data from CoreLogic shows that national dwelling values throughout Australia declined by 0.2 percent during the month of June to reach $516,713 as modest gains in Sydney and Melbourne were offset by continued declines elsewhere.
Whilst house prices are still falling, however, June’s result represents the slowest rate of decline on record for during any month since March last year.
CoreLogic Head of Research Tim Lawless said the June results provide further evidence that the decline in the housing market is running out of steam, albeit with no rapid recovery on the horizon.
He says the market is levelling out amid will be aided by the removal of uncertainty associated with negative gearing and tax changes, lower mortgage rates, the removal of onerous requirements for loan serviceability tests, improved affordability in Sydney and Melbourne, strong population growth and improved confidence generally.
“Overall, it looks like the tide may have turned for the housing market; however we aren’t expecting a rapid recovery phase,” Lawless said.