Across Australia, the rate of price growth continues to slow, with combined capital city home values down 0.3% in November, according to CoreLogic RP Data.
Sydney continued to drive capital city growth in November, with home values up 1% on a monthly basis. Melbourne saw the biggest decrease in values, with a 2.6% drop over November.
CoreLogic RP Data recorded home value decreases in Melbourne, Adelaide, Canberra and Darwin.
The year on year capital city result further reflects a slowdown, according to CoreLogic RP Data research analyst Cameron Kusher.
“Although combined capital city home values increased by a healthy 8.5% over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year – the rate of annual home value growth across the combined capital cities continued to slow after peaking at 11.5% over the 12 months to April 2014,” says Kusher.
Kusher says most Australian cities have now passed their cyclical peak periods.
“Importantly, this has become apparent in the two largest capital cities; Sydney and Melbourne, where annual value growth peaked at 16.7% in April 2014 and at 11.9% in January 2014 respectively,” he notes.
“Although Sydney and Melbourne appear to have moved through their peak periods, capital growth conditions have consistently been the main drivers of value growth over the past 12 months.”
Sydney’s November home values were 13.2% higher than those recorded in in November 2013. In the 12 months to November, Melbourne’s home values increased by 8.3%.
Brisbane recorded the third strongest year on year growth, with 6%. Hobart’s prices increased by 5.2% in the 12 months to November. Adelaide’s home values increased more modestly by 2.8% in the same period.
Perth and Darwin had the weakest year-on-year results, each recording 1.4% growth.
Kusher expects 2014’s value growth will be weaker than that seen in 2013.
Currently, the market appears to be weakening, Kusher says.
“Market indicators such as auction clearance rates remain quite strong, but also point to slightly weaker overall housing market conditions,” he explains. According to Corelogic RP Data, auction clearance rates have reduced across Melbourne and Sydney in recent weeks. The two cities are Australia’s biggest auction markets.
Kusher says property listing numbers have also begun to trend higher.
“This may indicate a slower rate of sale and is indicative of mounting stock on the market,” he notes.
On a monthly basis, Perth recorded an dwelling price increase of 0.9%, the second strongest capital city result. Brisbane home values increased by 0.4% over the same period, while Hobart recorded 0.2% growth. Adelaide home values were down 0.3% for November, Canberra saw a 0.5% decrease and Darwin’s dwelling prices decreased by 0.8%.
This story originally appeared on Property Observer.