Growth returns to sustainable levels: Residex
New data shows capital city markets slowed down over the past month, signalling a return to more moderate, long-term growth, according to a leading analyst.
Over May, Residex data shows house prices fell in all the capitals except Canberra, Brisbane and Sydney.
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Perth experienced the worst drop as the median plunged by 1.9 per cent.
On the other hand, Canberra had the strongest results, recording a 0.55 per cent increase.
The unit market was even less buoyant, with Darwin and Sydney the only capitals to record a rise in values.
Hobart suffered the worst downturn as unit prices fell by a whopping 2.38 per cent over the month.
Although these figures suggest the market may be slowing, Residex founder John Edwards believes the results are a positive signal for investors.
“The monthly numbers are ‘beautiful’ as far as I am concerned and are what I had been hoping for,” he said.
In Mr Edwards' view, the market’s rapid acceleration was unsustainable over the long term.
“Housing markets, particularly Sydney, were moving to a 'boom-like' performance. This was dangerous and could have led to a 'bubble' and a severe correction if it continued,” he said.
“The slowing of the market at this point in time suggests we are going to avoid this outcome."
