House prices drop in EVERY big city as coronavirus crisis rocks the property market – here’s what you can do to avoid getting burnt
- CoreLogic data revealed house price fall in every mainland state capital in June
- Melbourne’s median value dropped 1.3 per cent – the third straight month of falls
- Sydney’s mid-point price down 0.9 per cent – second consecutive monthly drop
House and apartment prices have fallen in every big capital city as the coronavirus crisis bites property values – and there are fears it could get a lot worse.
Melbourne is Australia’s worst-affected market with median house prices falling for the third month in a row, CoreLogic real estate data has revealed.
Sydney has suffered a decline for the second straight month, despite an easing of COVID-19 trading restrictions in New South Wales.
CoreLogic’s head of research Tim Lawless said the end of six-month mortgage repayment holidays in September could further jeopardise housing markets, adding upmarket suburbs were more likely to be hit harder first.
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A cluster of coronavirus outbreaks in Melbourne coincided with median house prices falling by 1.3 per cent in June, the third consecutive month of decline for the city, to $802,551. Pictured is a COVID testing centre at Fawkner in Melbourne’s north on June 27, 2020
Sydney also copped another hit, with mid-point prices last month falling by 0.9 per cent, marking the second straight month of falls, to $1,010,426. Pictured are walkers at Bondi Beach on June 6, 2020
‘Another key risk relates to the eventual removal of stimulus measures and borrower repayment holidays,’ he said.
Australian property markets bleed
SYDNEY: down 0.9 per cent to $1,010,426
MELBOURNE: down 1.3 per cent to $802,551
BRISBANE: down 0.4 per cent to $557,265
ADELAIDE: down 0.2 per cent to $476,639
PERTH: down 1.1 per cent to $459,376
HOBART: up 0.4 per cent to $516,600
DARWIN: up 0.4 per cent to $470,136
CANBERRA: up 0.1 per cent to $716,150
Source: CoreLogic Home Value Index for June 2020 of median house prices
‘Eventually, the economy and borrowers will need to abide by market forces.
‘This is when we could see a rise in mortgage arrears and the potential for a lift in urgent or forced sales.’
A cluster of coronavirus outbreaks in Melbourne coincided with median house prices falling by 1.3 per cent in June, the third consecutive month of decline, to $802,551.
‘The recent rise of active virus cases in Victoria are a reminder that the potential risk of a second wave remains a stark reality,’ Mr Lawless said.
Sydney also copped another hit, with mid-point prices last month falling by 0.9 per cent, marking the second straight month of falls, to $1,010,426.
Median house prices also fell last month in every mainland state capital city including Brisbane (down 0.4 per cent to $557,265), Adelaide (down 0.2 per cent to $476,639) and Perth (down 1.1 per cent to $459,376).
Hobart had some good news, with median house prices rising 0.4 per cent to $516,600, marking the second consecutive month of gains following a decline in April.
Darwin’s median house price also rose by 0.4 per cent to $470,136 as Canberra’s mid-point value edged up 0.1 per cent to $716,150.
CoreLogic said a fall in the supply of advertised homes to sell had limited the extent of the property market downturn.
‘A scarcity of advertised supply is one factor helping to insulate home values,’ it said.
Mr Lawless said more upmarket suburbs, particularly in Sydney and Melbourne, were more likely to be hit harder first, like they were during the most recent downturn between 2017 and 2019.
‘Higher value markets tend to be more reactive to changes in the environment, having led both the upswing and the downturn over previous cycles,’ he said.
Median house prices also fell last month in every mainland state capital city including Brisbane, where values fell 0.4 per cent to $557,265. Pictured is an empty South Bank in April
Perth’s median house price fell by 1.1 per cent in June to $459,376. Pictured is the Cottesloe Beach pavilion on May 25, 2020