Housing prices down 0.7% nationally, 0.8% in capital cities

The coronavirus pandemic continues to chip away at property prices, with the CoreLogic Home Value Index recording a decline of 0.7% in June - the second month in a row it's seen prices drop.

Among capital cities, dwelling values fell by 0.8% over the month, led by both Melbourne (-1.1%) and Perth (-1.1%). Sydney saw the third largest decline, with prices down by 0.8%.

Adelaide and Brisbane were relatively spared, recording price drops of just 0.2% and 0.4%, respectively. Meanwhile, indices for Hobart, Darwin and Canberra showed slight increases of between 0.1% and 0.3%.

CoreLogic head of research Tim Lawless said the impact of the coronavirus pandemic on property prices has so far been mild, and year-on-year growth remains strong for most capital cities.

“The twelve month change in home values remains in positive double digit territory across Sydney (13.3%) and Melbourne (10.2%),” he said.

“The only capitals where values show declines on an annual basis are Perth and Darwin, but even across these cities, home values were early into a recovery phase pre-COVID."

Market activity has also picked up after coming to a near standstill back in April. After recording a 21.5% spike in home sales in May, CoreLogic reports home sales continued to increase by 29.5% in June.

While it may seem that the property market hasn’t succumbed to the shocks that have plagued other industries, Lawless reminds Australians of the multiple stimulus measures that have been deployed to prop it up.

“A variety of factors have helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus,” he said.

“Additionally, low interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values.”

However, the economic outlook for the rest of the year remains uncertain, and we might be looking at a very different picture when the flow of support to mortgage holders runs out in September.

RELATED: Property price drops - In which areas can you find a better deal?


“While it is encouraging to see lenders have recently hinted at an extension in their repayment leniency policies, the government stimulus will eventually taper and banks will require borrowers to repay their loans,” Lawless said.

“The longer term outlook for the housing market is largely dependent on how well the economy is tracking when these support measures are removed.”

If your job is secure and you’re looking to take advantage of dipping prices, browse our guide to making your property move during lockdown for tips. And if you’d like to compare loans, visit our home loan comparison page for more information.

Home loan comparisons on Mozo - last updated 17 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.