Down, down, Perth property prices are down

Perth property prices fell again in July.
Perth property prices fell again in July.

NATIONALLY experts think property prices “found a floor” in July, but Perth recorded another decline.

While five of the eight capital cities saw a subtle rise in values over the month Perth values decreased 0.5 per cent to $441, 275, according to the latest CoreLogic home value index.

Over the last three month values fell 2.2 per cent, making Perth the weakest performing capital city.

Source: CoreLogic

The decrease over the past 12 months was 8.9 per cent, with only Sydney recording a higher decline at 9.0 per cent.

Prices are down 20 per cent over the past 5 years and are 20.2 per cent lower than the peak.

Source: CoreLogic.

Several Perth regions ranked among the bottom 10 capital city sub-regions for annual change in dwelling values with Mandurah recording a 10.1 per cent decline and Perth’s South East and Inner both recording 10.2 per cent falls.

Head of research Tim Lawless said as Sydney and Melbourne values levelled out and Perth values continued to trend lower, sub-regions of Perth were once again starting to comprise a larger portion of the top ten list for the largest annual fall in dwelling values .

Source: CoreLogic.

There was some good news for the upper quartile of the market.

“Top quartile values were -2.1 per cent lower over the past three months while lower quartile values were down a more substantial -2.8 per cent,” Mr Lawless said.

Nationally Mr Lawless said the July results provided further confirmation that, particularly in the largest cities, the housing market had reacted positively to the recent stimulus of lower mortgage rates and improved credit availability, however the response so far had been relatively mild and there “is no sign of a ‘v-shaped’ recovery”.

“The ongoing tightness in housing credit is expected to keep a rapid rebound in housing values at bay, despite the lowest mortgage rates since the 1950s,” he said.

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