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The real estate market is going through "around the storm"


Darwin was the weakest capital with asset values ​​that fell 1.7 percent during the month and 5.1 percent in the past three months.

Although last year there were promising signs that Perth prices are equalizing, the latest data showed that the city's downfall, which began at the end of 2014, had a "second wind," with a fall in prices of 1.5 percent in February and 3.5 percent. cents above the wave.

Prices in Perth have now fallen 17.8 percent since they reached a peak four years ago.

"Labor markets in Perth have really weakened, and in the trend of VA unemployment is 6.6% – the highest since October 2016 – and job growth is fairly favorable. The layer of tightening credit conditions is increasing the problem," he said.

Annual change in the value of apartments. Corelogic

The sharpening of credit, a key driver of falling prices – especially in Melbourne and Sydney – has not shown signs of weakening since the weak lending policy of banks was thrown into the spotlight during the Royal Banking Commission last year.

January saw the smallest growth in credit growth of just 0.2 percent since July 1984, according to RBA data. On an annual basis, investor loans grew at a record low of 1%.

"The biggest worry is that the credit growth of the owner's tenant is losing the pace quite sharply, which is really the reason why we see that the decline has become even more widespread," he said.

"Investors are roughly half as small as the owners in terms of the value of loans, so the slowdown in lending to owners is considerably higher for the market."

Even markets that recorded positive price increases during the year, have now been left without money.

The real estate market in Hobart, where the value grew by 7.2% annually, slowed to 0.8% in February and 1.1% in the past three months.

In Canberra, prices were flat during the quarter, but fell in February by 0.2%. The property value in Adelaide remained flat.

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