House prices across Australia are continuing to decline, the latest data shows.
Releasing the latest version of its home value index, real-estate information services provider CoreLogic says that national house prices declined by a further 1.0 percent in January to stand at $528,553 ($604,173 in capital cities).
Leading the way was Sydney and Melbourne, where prices dropped by 1.3 percent and 1.6 percent to come in at $795,509 and $636,048 respectively.
National dwelling prices have now declined by 2.7 percent over the past quarter (3.3 percent in combined capital cities), with quarterly declines of 4.5 percent in Sydney and 4.0 percent in Melbourne.
Year-on-year, house prices are down 5.6 percent nationally, 9.7 percent in Sydney and 8.3 percent in Melbourne.
The latest results take Sydney dwelling values back to levels last seen roughly two and half years ago (July 2016).
In Melbourne, where the market peaked four months later than Sydney, dwelling values are back to January 2017 levels.
Some sub-regions in Sydney and Melbourne have been particularly hard hit.
Over the past twelve months, prices have dropped by 15 percent in inner-east Melbourne, 13.4 percent in Ryde (Sydney), 12.1 percent in inner south-west Sydney, 11.7 percent in inner-south Melbourne and 11.6 percent in Sutherland (Sydney).
Markets are stronger, however, in Hobart and Canberra.
Whilst house prices in Hobart ($457,785) contracted by 0.2 percent during the month, they are up 7.8 percent year-on-year.
Those in Canberra (up 0.2 percent in Jan) have risen by 3.8 percent over the past year.
Tim Lawless, Corelogic Executive Research Director, Asia Pacific says several factors lie behind deteriorating market conditions.
“January can be a difficult month to read the housing market due to low levels of activity however, the recent trend in housing market data has generally weakened over the past three months, with the pace of decline accelerating across markets already in the their down phase, and growth generally moderating in other areas,” Lawless said.
“Tight credit conditions, weakening consumer sentiment, less domestic and foreign investment and higher levels of housing supply are the primary drivers of the worsening conditions.”