The rapid pace of property price declines appears to have slowed, with most capital cities recording only a moderate drop in values during January, new data from PropTrack shows.
Across all markets home values declined by 0.09 per cent in January, according to PropTrack’s latest Home Price Index update.
Prices fell in every capital city over the month, with the exception of Perth (up 0.06 per cent) and Darwin (unchanged).
Canberra (down 0.24 per cent) and Melbourne (down 0.22 per cent) recorded the largest fall in property values.
Of the regional markets, regional WA fell the fastest (down 0.27 per cent) while regional South Australia continued to outperform (rising 0.46 per cent).
Despite the pace of price declines slowing in January, PropTrack Senior Economist Eleanor Creagh said multiple markets had experienced a particularly rapid rate of decline in the past year.
“Since their respective peaks, home prices have fallen at the fastest pace in more than a decade in Sydney, Brisbane and Hobart,” Ms Creagh said.
“Home prices in Canberra have recorded both the fastest and deepest decline in over 10 years.”
Sydney property values recorded a 0.06 per cent fall in January and are now down 7.27 per cent over the past year and 7.51 per cent from their peak.
Melbourne prices fell 0.22 per cent in January and are now 5.79 per cent below their January 2022 level and 6.42 per cent below their March 2022 peak.
Brisbane recorded a 0.07 per cent fall in January; prices are down 0.24 per cent over the past
year and 3.76 per cent below their April peak.
Perth property values were up 0.06 per cent in January and 3.1 per cent over the past year, and are currently sitting at 0.5 per cent below their October peak.
Darwin values were unchanged in January and remain at peak levels, up 1.5 per cent on a year ago.
Adelaide values fell 0.14 per cent in January and currently sit 0.21 per cent below their October peak, though remain 7.94 per cent higher than they were 12 months ago.
Hobart property values fell 0.05 per cent in January, they’re currently 2.88 per cent below their April peak and 1.46 per cent lower than they were a year ago.
Prices in Canberra fell 0.24 per cent in January and are now 5.59 per cent below their March peak and 3.82 per cent lower than they were a year ago.
CoreLogic also reporting slowing
CoreLogic’s national Home Value Index (HVI) is also showing a slowdown in the pace of declines.
The 1 per cent decline recorded in January was a slight improvement on the 1.1 per cent decline recorded in December and the smallest month-on-month decline witnessed since June 2022.
CoreLogic Research Director Tim Lawless said there were clear signs the downturn was losing steam.
“The quarterly trend in housing values is clearly pointing to a reduction in the pace of decline across most regions, however at -1 per cent over the month and -3.2 per cent over the rolling quarter, national housing values are still falling quite rapidly compared to previous downturns,” Mr Lawless said.
The most noticeable easing in value falls could be witnessed in the prestige markets, Mr Lawless added.
“While this trend towards improving conditions across premium markets is not evident in all cities, it is most apparent in Sydney’s detached house market,” he said.
“Quarterly declines in this market segment eased from -7.7 per cent in the three months to August, to -3.9 per cent in the three months to January.
“The improvement could be reflective of more buyers taking advantage of larger price drops across the premium sector, where house values are down -17.4 per cent since peaking in January 2022.”