A new Domain report shows drops in house prices over the last quarter, including a 3.1 per cent drop in Sydney over the last quarter, signify the first quarterly fall since 2012.
"The remarkable Sydney boom we’ve seen over the last three years is now clearly over, with the market unlikely to record any notable house prices growth until at least spring," Domain senior economist Dr Andrew Wilson said in a report released on January 28.
But in terms of yearly changes, every state and territory capitals have seen house prices increase from the last year.
Still Dr Wilson believes the pattern may change: “While the median house price still remains above $1 million, if current trends continue it will likely fall below this benchmark by mid-year.”
Melbourne house prices have undergone a 14.5 per cent growth over 2015, only 0.3 percent behind Sydney, resulting in the highest annual result since 2009.
Canberra also experienced its greatest house-price growth rate since 2009 and grew 4.3 per cent over the December quarter, with Dr Wilson noting Canberra is “behind only that of the Sydney and Melbourne markets”.
Perth is seeing house prices steady following a previous fall. The decline recorded over the December quarter was at a marginal 0.8 per cent.
“Although Perth’s median house price continues to fall as a result of the declining mining sector, it’s not all bad news. There are early signs suggesting the rate of decline is moderating, as affordability improves and confidence recovers,” Dr Wilson said.
Darwin, however, is not doing so well, with house prices falling again over this quarter by 2 percent, with a current median price of $636,854.
"While the local economy remains strong, the Darwin housing market continues to be impacted by the decline in the resource economy and the end to the significant demand driver of the fly-in-fly-out mining workforce," Dr Wilson said.
Hobart prices remain strong, up by 7.9 per cent over the last quarter, as are Adelaide’s - increasing by 1.8 per cent, and Brisbane’s - increasing by 1.5 per cent.
