Real estate prices in Australia remained on an uptrend in August, but new signs of slowing continued to appear.
CoreLogic figures show a 1.5% monthly increase in house prices nationwide. Even though it was still well above average, it was also the lowest monthly gain since the start of the year.
The increase was visible everywhere except in Darwin, which reported the only monthly price drop at 0.1%.
For this monthly update, CoreLogic did not include Western Australia and Perth in the index given the pending resolution of the divergence in local market indicators.
Wage growth does not follow
CoreLogic Research Director Tim Lawless said the August index reading was far from the peak reached in early March when prices rose 2.8%.
Mr Lawless said the slowdown was largely due to worsening affordability constraints rather than recent bottlenecks.
"House prices have increased almost 11 times faster than wage growth over the past year, creating a greater barrier to entry for those who do not yet own a home "he said.
"The closures have a clear impact on consumer sentiment, but to date the restrictions have resulted in fewer listings and, to a lesser extent, fewer home sales, with less impact on the dynamics of price growth. "
On an annual basis, property values ??increased by 18.4%, the largest increase recorded since 1989.
In contrast, wages increased at an average rate of 1.7%.
Blockages hamper activity
While recent closures weren't a major factor in slowing earnings, they still had negative effects on business as supply and demand decline.
Recently advertised properties were 19.7% above the five-year average in May, but due to closures and seasonal factors, the number of new listings through August has fallen to 5.8% below the five-year average.
The total number of active registrations also tended to decline, down 29.4% from the average.
In addition, home sales declined, down 9% over the three-month period.
Mr. Lawless said that despite fewer buyers in the past three months, sales have remained 30% above the five-year average.
"We are still seeing a disconnect between advertised supply and demand for housing, even in cities where foreclosure restrictions are active, keeping upward pressure on house prices despite the challenges. faced by buyers and sellers, ”he said.
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