House prices fall in three Aussie capitals as heat leaves market

New data from property firm CoreLogic shows home values in Australia rose 0.5 per cent last month, the 18th consecutive monthly increase.

But three state capitals recorded a decline in values over the past three months.

Melbourne headed the dip with a -0.9 decline, ahead of Hobart (-0.8 per cent) and Darwin (-0.3 per cent).

And other capital cities are feeling the impact of a slowing property market. Price growth in Sydney over the past three months has fallen markedly to 1.1 per cent, a fraction of the 5 per cent quarterly gain the same time last year.

National home values are up 1.7 per cent in the past quarter, compared with the 3.2 per cent increase this time last year, while the mid-sized capitals are continuing to buck the slowing trend.

The quarterly pace of growth in Perth was tracking at 6.2 per cent, while Adelaide accelerated to 5 per cent, the fastest consecutive three-month pace of growth since May 2022.

Brisbane values rose at a quarterly pace of 3.8 per cent, though this is down from a 4.7 per cent increase seen this time last year.

CoreLogic says supply factors and declining borrowing capacity in blue-chip markets such as Sydney help explain the fragmented national picture.

“The number of homes for sale in Brisbane, Adelaide and Perth is more than 30 per cent below average for this time of the year, while weaker markets like Melbourne and Hobart are recording advertised supply well above average levels,” said research director Tim Lawless.

The data is part of CoreLogic’s Hedonic Home Value Index as of August 1, 2024.