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The dollar values of market declines revealed
research
1 minute read

The dollar values of market declines revealed

The dollar values of market declines revealed

by Sasha Karen | April 26, 2019 | 1 minute read

New research has taken a look at the percentages typically thrown about when talking about declines and has revealed what this means in actual dollar declines.

Australian suburbs
April 26, 2019

In the latest Property Pulse report, CoreLogic research analyst Cameron Kusher has analysed the state and territory’s property markets, highlighting the need to keep the context of a market’s downfall in mind.

“While a values percentage fall indicates how the market is faring, seeing the actual value of the declines is a stark reminder of the actual losses,” Mr Kusher said.

Nationally, values have fallen by 7.4 per cent from their peak in October 2017 through to March 2019, which equates to an approximate loss of $40,590.

The combined capital cities figure saw a slightly larger decline at 9.2 per cent from their peak in September 2017, equating to $59,478. Regional markets have fared better in comparison, falling by 2.5 per cent from their May 2018 peak, equating to just $9,464.

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The Property Pulse report also analysed each of the states and territories:

NSW

Sydney’s values fell 13.9 per cent compared to their peak, equating to a loss of $124,739. Regional NSW values fell just by 4.1 per cent, equating to a loss of $18,674.

Victoria

Melbourne values fell 10.3 per cent from their peak, or $71,404. Regional Victoria have seen a decline of a mere 0.8 of a percentage point, or $2,749.

Queensland

Brisbane values have fallen 1.6 per cent from their peak, which is just $7,796, and regional Queensland has seen values fall 4.9 per cent, or $18,773.

South Australia

Both capital city and regional values in the state have seen little declines compared to their peaks, with Adelaide down 0.5 of a percentage point, or $2,307, and regional South Australia down 3.4 per cent, or $8,623.

Western Australia

PerthPerth, TAS Perth, WA’s dwelling values have fallen 18.1 per cent from its peak, or $97,797, while regional values in Western Australia are down nearly a third compared to its peak at 31.6 per cent, or $118,734.

Tasmania

Both Hobart and regional Tasmania are currently at their peaks, and according to the Property Pulse, are the only two major regions to not fall from their peak currently.

Northern Territory

Darwin values have declined 27.5 per cent from their peak, or $145,980, the largest decline for any major region. Regional values are also down from their peak at 7.9 per cent, or $31,761.

Australian Capital Territory

Values in Canberra have only slipped by 0.2 per cent from their peak, or $1,071.

Canberra values are -0.2 per cent lower than their peak or -$1,071.

Mr Kusher added that despite the large gains made in Sydney and Melbourne to offset the recent decline, the reality is that those who purchased near or at the peak of the market have borne the brunt of the declines.

Looking to the future, Mr Kusher predicted the declines will continue, and is expected to move out of sync with debt.

“While values are falling, the debt held against these properties is unlikely to be reducing at the same pace, resulting in wealth declines for holders of residential property,” he said.

Due to the lowering values, Mr Kusher said the current environment is a good time for those looking to buy property at cheaper prices.

“With advertised stock levels remaining high and mortgage rates tracking around the lowest level since the 1960s (and potentially moving even lower later this year), active buyers are back in the driver’s seat to take advantage of improved housing affordability and the low cost of debt,” Mr Kusher said.

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