Real Estate Institute of Australia (REIA) on Tuesday had some good news for first-time home buyers.
According to the industry group’s latest Real Estate Market Facts report, property values across Australian capital cities decreased in the June quarter 2018 with the weighted average median prices declining by 0.8% for houses and 0.3% for other dwellings.
The eight capital cities saw their weighted average median price for houses drop to $765,098 over the quarter, with prices trending lower in all capital cities except for Brisbane, Adelaide, and Hobart.
REIA President Malcolm Gunning revealed the weighted average median price for other dwellings slid to $590,935 over the quarter, with prices declining in half of the cities, with Melbourne, Brisbane, Hobart, and Darwin immune.
“Canberra had the largest fall in house prices and Adelaide had the largest decline in other dwellings. Adelaide has both the lowest median price for houses at $471,000 and the lowest median price for other dwellings at $354,167,” he further explained.
“Over the quarter, the median rent for three-bedroom houses increased in Canberra and Darwin, remained steady in Perth and, decreased in Sydney, Melbourne, Brisbane, Adelaide, and Hobart. The median rent for two-bedroom other dwellings increased in Canberra and Hobart, remained steady in Perth and decreased in Sydney, Melbourne, Brisbane, Adelaide, and Darwin. Hobart had the largest increase while Brisbane had the largest decrease.”
It was also noted that the weighted average vacancy rate for the eight capital cities fell to 2.5%, and Canberra was seen to have the tightest market with a vacancy rate of 0.8%.
Moreover, figures showed that declining prices are directly proportional to weakening number of loans.
“Over the past 12 months, loan numbers have decreased by 3.8% across the country with declines in all states and territories except Tasmania. The largest decrease of 13.6% was in Western Australia.”
Sydney and Melbourne, meanwhile, also recorded less number of loans also albeit recording significant price increases. This was due to APRA restrictions on investment loans and more stringent home lending criteria.