If there is any further proof that prices shouldn't drop drastically, it would be CoreLogic's latest monthly update, which showed the declines are actually slowing down.
Housing values ??in capital cities are starting to do better, with the rate of decline slowing except in Melbourne. Nationally, house prices fell just 0.4% in August, down from the 0.6% drop the month before.
As home values ??have continued to decline from their pre-COVID highs, the rate of decline has already moderated from a macro perspective, said Tim Lawless, chief of research at CoreLogic.
In the capital cities, house prices fell by 0.5% on average. This drop is explained by the sustained 1.2% drop in prices in Melbourne.
"Following a similar drop in July, home values ??in Melbourne fell 1.2% in August, the largest drop recorded among capital cities, demonstrating the impact of a viral outbreak worse compared to other cities, with higher demand. The impact of overseas immigration stalled. During the COVID period to date, home values ??in Melbourne fell 4.6%, ”Lawless said.
Lawless said the performance of housing markets was "intrinsically linked" to the extent of social distancing policies and border closures.
"It is not surprising to see Melbourne as the weakest housing market given the extent of the virus outbreak and subsequent restrictions, which have weakened economic performance of Victoria, ”he said.
Other capitals performed better, with declines in Sydney and Brisbane moderating to 0.5% and 0.1% respectively. Darwin posted the highest price gains at 1%, followed by Canberra at 0.5% and Hobart at 0.1%. Adelaide and Perth maintained home values ??during the month.
Regional markets were able to maintain their median housing value. However, it is crucial to note that the dynamics of regional markets before COVID-19 have already slowed down. In fact, prices in these markets have been stable since May.
Lawless said the limited exposure of regional markets to net migration abroad has helped them maintain their position amid the pandemic.
"Regional markets may also be attractive for their relatively low density and lower prices. The standardization of remote working during the pandemic could make proximity to major cities less of a factor in purchasing decisions. # 39; housing, ”Lawless said.
Consult the table below to see the price development of the capital markets in August:
Top suburbs:
north epping
,
sth toowoomba
,
st peters
,
bendigo
,
Wall
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