Lukewarm Improvements In Perth’s Housing Market Appear Short Lived With New CoreLogic Data Showing Prices Took A 1% Dip In April.

The CoreLogic Hedonic Home Value Index, released today, shows Perth’s rocky property market continues with a 2.4% drop in house prices in the past three months.

The result further cements Perth as Australia’s worst performing capital city.

It comes despite a small improvement in March after a slump in property values in February and a marginal increase in January, that had fuelled hopes of a new year recovery.

The median property price in Perth is now $472,000.

The loss of capital growth of Perth houses was less than units, with houses sustaining a 0.9% drop and a decline of 1.8% for units.

Across the nation, most capital cities experienced marginal growth.

In Sydney, values remained flat in April while Melbourne sustained a 0.5% increase. Adelaide and Brisbane saw small growth with 0.8% and 0.6% respectively.

Hobart performed well with a 1% improvement, but the news was not so bright in Canberra with a 2.4% dip in values.

CoreLogic Head of Research Tim Lawless says the moderation of growth in April was largely due to cooling markets in Sydney and Melbourne.

“We need to be cautious in calling a peak in the market after only one month of soft results,” Lawless says.

“April, in particular, coincides with seasonal factors including Easter, school holidays and ANZAC day long weekend. The softer results should also be viewed against a backdrop of an ever-evolving regulatory landscape which is firmly aimed at slowing investment and interest-only mortgage lending.

“Testament to this is mortgage rates which have been edging higher, particularly for investors and interest-only loans, as well as rental yields which have been hovering around record lows.”

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