Property prices have been rising since March 2013 but the May figures in the RP Data-Rismark Home Value Index shows an average drop of 1.9% in properties in capital cities across Australia.
Dwellings in Melbourne recorded the greatest drop in prices with a 3.6% fall while Sydney prices softened 1.1% and Brisbane was down 1.7%. One capital city, Canberra, went against the trend and rose 0.1%.
There are several factors which may have contributed to the fall. RP Data’s research director, Tim Lawless, says it is routine to see a cooling in the Australian property market in April and May after the traditionally busy autumn selling season.
When looking at the last 12 months it is important to keep in mind that current prices remain well above those from last year. Capital city values have increased by an average of 10.7% on a year-on-year basis, with Sydney properties up by 16.6%.
Sydney remains Australia’s most expensive city with a median house price of $678,500, while the most affordable is Hobart with a median property price of $345,000.
There are still signs of heat within the market. In Sydney recently, the new Aqua development in Bondi Junction sold all 129 apartments on the first day of sales while another development in Lindfield sold 75% of apartments on offer.
With rates remaining at a record low and property market confidence at a high, it is likely that this is a small dip in the market which could well be the calm before the buying storm.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Director and Founder of 1st Street Home Loans, Jeremy Fisher, is one of the most awarded mortgage brokers in the industry and winner of the Australian Broker Association's prestigious 'Australian Broker of the Year'. Since 2001, Jeremy has settled in excess of $500 million worth of property loans and delighted clients with exceptional results and highly personalised service. 1st Street Home Loans specialises in Home Loans, Commercial Loans, Leasing and Financial Planning.
1st Street Home Loans is a leader in the industry – awarded No. 1 Mortgage Broker in Australia and ranked No. 1 Elite Business Writer in Australia. We have the knowledge and the relationships to get you the best rate on the market, guaranteed, without charging you any fees. You can be approved for a loan within 48 hours and 1st Street will take care of all of the paperwork and communications with lenders, real estate agents and solicitors.