The property downturn in Melbourne has spread its tentacles far enough to now reach the lower end of the market.
Across the nation property prices fell 1.5 per cent in the September quarter, with the median house falling to $675,000.
It was Melbourne’s worst performance result since September 2008, with prices dropping 2.6 per cent.
While the property downswing tentacles were noticeable everywhere, for established houses weakness was most evident in the lower-to-middle price bracket of $650,000 – $1,000,000.
The stats come from the Australian Bureau of Statistics and their chief economist Bruce Hockman spoke to News.com about the lower end of ther market.
“Falls in Melbourne and Sydney are no longer confined to the more expensive properties, with declines now being observed in the lower segments of the market,” he said.
“Results are in line with market indicators, with auction clearance rates and sales volumes falling and days on market trending higher.”
Market analysts CoreLogic says house prices in over 80 per cent of council areas are on the downward slide.
“In Melbourne you can see that in 2018 the falls have been largely in those areas closer to the city and it’s slowly creeping out to the more affordable suburban areas,” CoreLogic’s Cameron Kusher told the ABC.
“In Melbourne, we’ve not gone quite as deep as the financial crisis yet but…it’s certainly gathering pace.”
The National Australia Bank says they expect the market to drop by around 15 per cent by 2020, but say although it’s pretty dire forecast, house prices are still up 45 per cent on the last trough four years ago and sees the current trend as an ‘orderly correction’.