Australia's most expensive markets – particularly Sydney and Melbourne, but also the mining capitals of Perth and Darwin – have recorded bigger price declines than the national average.
These drops were measured in the latest home price index by CoreLogic, which tracks the price changes in each of the state. Citing the index, The Business Insider Australia said the underwhelming performance of these housing markets have offset the gains seen in Brisbane, Adelaide, Canberra, and Hobart. As a result, Australia's median home price has fallen by 2.7%.
The index also showed that the top market tiers have witnessed the fastest downturns, with Sydney and Melbourne's prices seeing 8.4% and 6.7% price falls, respectively.
Hobart still reigned as the strongest housing market, recording a 9.3% price gain over the past year, while the rest of Tasmania prices rise 8.1% during the same period. Interestingly, values also held up in the rest of New South Wales, Victoria, Queensland, and South Australia.
On the other hand, prices for combined state capitals have declined by 3.7%. Given that values for combined regional areas have grown by 1.2% over the past year, it is safe to say that the decline in capital cities is to blame for the national price downturn.
The disparity in prices across Australia reflects the impacts of tighter lending standards, which have restricted the options for cash-strapped buyers, leaving them with no choice but to go after the more affordable markets.