Growth, inflation and labour market all easing
CoreLogic reported further slippage in dwelling values over the first month of 2018, with national dwelling values recording their second consecutive month on month decline. After dwelling values held firm in October and November, they slipped by a third of a percent in both December and January to be down 0.7% from their peak.
The fall in national dwelling values was broad based across the capitals, but continues to be led by Sydney, where values were down almost 1% over the month to be 3.1% lower since their peak back in July last year. Month on month falls were recorded across every capital city except Brisbane, where values were steady, and Hobart where dwelling values continued their strong run of growth, surging another 1% higher.
Looking at the annual trend in housing performance, the two largest capital cities are the main drivers behind the slowdown, however, most other capital cities have also experienced softer growth over recent months. Sydney’s annual growth rate peaked at 17.1% in May last year and at 13.1% in July for Melbourne. Current annual growth rates in both cities are substantially lower than their 2017 peaks which highlights the significant slowdown over the second half of the year which has continued in early 2018.
Take a look at the national update or your capital city update by clicking on the relevant link below:
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