THE growth in Australian home values is slowing but an emerging downturn will not solve dire housing affordability challenges.
The nation’s two most populous cities, Sydney and Melbourne, are driving the fall, with Canberra and Hobart values also declining, while growth continues at a slower rate in other capitals and regions across Australia, according to analysis from property data firm CoreLogic.
“Even in the highest growth markets like Perth, Brisbane and Adelaide, we’re seeing the pace of growth slow right down,” CoreLogic research head Eliza Owen told AAP.
Sydney and Melbourne have about 40 per cent of the nation’s housing stock, accounting for about half the total value of homes nationwide and largely impacting the change in value.
When seasonally adjusted for the typically slower December period, national values grew slightly, but more homes have been hitting the market and taking longer to sell.
Growth has been slowing since last June but values have consistently climbed for 21 months, increasing almost 15 per cent in the same period and are unlikely to fall anywhere close to that amount, Ms Owen said.
“Housing market downturns tend to be shorter and less severe – this is unlikely to match the magnitude of the preceding upswing.”
A cyclical downturn will also be unlikely to cure the ongoing housing affordability challenges around the nation, especially for lower-income households and renters.
Signs of a downturn reflect slowing income and economic growth, while a discrepancy remains between what houses cost and what households can pay, Ms Owen said.
