(prices have now fallen 22 per cent since their peak in mid-2014)
Perth`s continued collapse in house prices disappointed many sellers. Last month`s data showed that the city is currently the weakest region in Australia`s real estate market.
Although national house prices rose 1.2 percent in October, the biggest monthly increase since May 2015, new data released today showed Perth prices fell another 0.4 percent.
Although it was half the decline in September, local house prices fell 1.7 percent in the past three months and 8.7 percent in a year.
It has fallen 22% since its peak in mid-2014.
Housing markets across Australia recovered for the fourth month in a row, with Sydney (up 1.7 percent) and Melbourne (2.3 percent) leading, according to (hedonic home value index), the latest house value index from corelogic, a real estate data analyst.
With the exception of Perth, house prices rose in all major provincial capitals. Perth has the lowest median house price of A $451800, about half of Sydney`s A $918314 median.
"the recent rise came after a general fall in housing prices," the report said. "between October 2017 and June 2019, the national house value index fell 8.4 percent."
"the recovery in October pushed national home prices up 2.9 percent from their lowest level in June 2019, but still 5.7 percent below their peak. This suggests that despite the recent rise in house prices, it is still at the level it was three years ago."
"the strongest growth areas are still concentrated in Melbourne and Sydney. Rising buyer demand has directly spurred house prices as mortgage rates have fallen and credit availability has improved."
"although the Perth housing market is currently the weakest in the country, the downward trend has improved, with three months of data showing the smallest decline in house prices in 14 months," Tim Lawless, director of research at CoreLogic, said.
Prudential Regulatory Authority, the Australian banking regulator, revised the mortgage service rules in July. The revision makes it easier for applicants to apply for loans in the future, and banks no longer need to check whether applicants can afford a 7 percent interest rate increase.
Shane Oliver, chief economics of (AMP), said: "these moves may have unleashed demand that was curbed between September 2017 and June this year when prices fell."
