Melbourne house price growth has slowed to its lowest rate in nearly six years and in Sydney house prices have fallen at their fastest rate in decade.
On top of this, the national median house price has fallen by 1 per cent, which is the first time it has fallen since 2012, now sitting at $802,077.
Domain Group analyst Nicola Powell spoke to Australian Financial Review about the figures.
“On a national level we’re seeing a softening of conditions which is being driven by Sydney and Melbourne,” she said.
“All capital cities are showing softer conditions compared to last year, with the exception of Hobart and Perth.”
How long the price falls will stick around is uncertain and could depend on possible interest rate rises in the coming months or further tightening of lending restrictions, but economists say it is unlikely to roll back all the gains made during the recent six-year property boom.
The New South Wales Premier Gladys Berejiklian says the slowing house prices are a welcome relief for her state and those trying to get into the property market.
While house prices in Melbourne haven’t yet actually gone backwards, the figures suggest they will do soon.
The median house price in our state has fallen by 1.8 per cent from the March quarter to sit at $882,082.
Fortunes are somewhat different on the west coast, with Perth starting to show signs of recovery from their post-mining boom hangover.