Small decline in house prices masks significant price falls in major Australian cities

Font size :
Official data from the Australian Bureau of Statistics show that housing prices in Australia have fallen by a mere 0.2 per cent in the March quarter. But in spite of the decline being small, the nationwide picture masks something a little more worrying, with a number of cities showing more significant price falls.

House prices fell by 4.8 per cent in Perth since the first half of 2014. Prices are now back to the level of early 2013, which means that those who have bought a house in Perth in the last three years have either broken even or lost money entirely.

Similarly, Darwin house prices have dropped by 5.9 per cent since the June 2014 quarter and are now back to its level during the March 2012 quarter. Even Sydney house prices are falling are dropping, with a cumulative decline of 2.3 per cent in the past six months. This is an indication that the value of the mortgage is larger than the value of the property, translating to either zero growth or a loss.

Although a moderation in house prices is desirable for affordability purposes, this trend might have dire consequences, such as the destruction of an already fragile consumer confidence and an escalation in bad debt levels. Add to that the risk of a property glut as the result of the record boom in dwelling construction, a tightening in foreign investor lending, and restriction on foreign purchases, and this could emerge as a serious threat to the economy.

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

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Sep 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords