WHILE dwelling prices grew 1.2 per cent nationally in October, Perth’s overall median price declined 0.4 per cent to $435,119 according to the latest CoreLogic Home Value Index.
All other capital cities recorded increases.
Perth now has the lowest median house price of any capital city ($451,800) with Darwin house values a close second with a median of $468,300.
“Unsurprisingly, the NT and WA are showing the highest proportion of first-home buyer activity, with first time buyers not weighed down by negative equity and with the ability to take advantage of very affordable housing in these regions,” head of research Tim Lawless said.
Perth was weakest performing capital city in the three months to October and over the past 12 months the greater Perth region included six of the 10 weakest capital city markets.
Overall dwelling values fell 8.7 per cent over the year, and were 21.6 per cent below their peak.
There was some good news though; Mr Lawless said the rolling three-month trend in housing values recorded the smallest decline in 14 months (-1.7 per cent).
While conditions remain subdued in Perth, nationally dwelling values recorded the largest month-on-month gain since May 2015.
Mr Lawless said the recent gains came after a broad-based decline in housing values, with the national index declining 8.4 per cent between October 2017 and June 2019.
“The positive October result takes national dwelling values 2.9 per cent off their June 2019 floor, however values remain 5.7 per cent below their peak, highlighting that despite the recent gains, home values are at a similar level to where they were three years ago,” he said.
The strongest growth conditions continued to be centred in Melbourne (+2.3 per cent) and Sydney (+1.5 per cent) and Mr Lawless said the stronger rebound in those areas could be attributed to a blend of factors; tighter labour market conditions and stronger population growth relative to the other capitals, coupled with the stimulatory effect of the lowest mortgage rates since the 1950’s, and improved access to credit.
Stamp duty exemptions for first home buyers purchasing under specific price points have added additional stimulus to housing demand.