Perth house prices down nearly $100,000 since peak

Stock image.
Stock image.

PERTH property prices have fallen 18.1 per cent from their peak in mid-2014 according to CoreLogic.

This equates to nearly a $100,000 change in value.

Of the capital cities, only Darwin has recorded a greater percentage fall in prices.

Sydney and Melbourne, which have dominated headlines in recent years with strong price growth, recorded decreases of 13.9 per cent and 10.3 per cent respectively.

Source: CoreLogic.

Regional WA has seen a greatest percentage fall, with prices down 31.6 per cent, or nearly $120,000.

Nationally, dwelling values have decreased 7.4 per cent, or $40,950, from their October 2017 peak.

Source: CoreLogic.

CoreLogic research analyst Cameron Kusher said while a values percentage fall indicated how the market was fairing, seeing the actual value of the declines was a stark reminder of the actual losses.

“While the recent declines in markets like Sydney and Melbourne can be put in context of the significant increases over recent years, this is little comfort for home owners that purchased at or near the peak of the market,” he said.

Over the coming months, Mr Kusher expects declines to continue, leading to further falls in asset values.

“While values are falling, the debt held against these properties is unlikely to be reducing at the same pace resulting in wealth declines for holders of residential property,” he said.

This news might not be ideal for people looking to sell, but there were positives for buyers.

Mr Kusher said lower housing values were becoming more attractive to first-home buyers and prospective buyers who were previously priced out of the housing market.

“With advertised stock levels remaining high and mortgage rates tracking around the lowest level since the 1960’s (and potentially moving even lower later this year), active buyers are back in the drivers seat to take advantage of improved housing affordability and the low cost of debt,” he said.

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