National housing prices "may have bottomed out" in July as stocks stabilize after a steady monthly decline in the first half of 2019, according to Tim Lawless, Research Manager at CoreLogic,
The value of capital city dwellings combined increased 0.1% in July, but prices in regional markets remained flat, according to CoreLogic's Hedonic Home Value Index.
Brisbane, Darwin, Hobart, Melbourne and Sydney experienced subtle price growth. The values in Hobart and Darwin also increased by 0.3% and 0.4% respectively, while all the capitals of the east coast recorded a growth of 0.2%, according to the data.
According to Lawless, price growth in Brisbane and Sydney greatly contributed to the market turnaround.
"The two largest Australian cities, Sydney and Melbourne, have contributed significantly to the recovery of the housing market. Values have increased over the past two months. They decreased by 0.3% in Sydney and 0.4% in Melbourne. , Says Lawless.
The reduction of mortgage rates, improved access to credit, increased confidence in the housing market after the elections and recent tax cuts likely support the Improved housing conditions, according to Lawless.
However, buyers should not expect prices to "go down again," according to Chief Economist of the AMP, Shane Oliver.
"There are many favorable factors for the real estate market, but I do not think prices will go down, because credit standards are much stricter this time around," Oliver told Business Insider Australia.
There will be a six-month period until the end of 2019 when prices will reach their lowest level before modest gains occur until 2020, Oliver said.
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