So did we see signs the current slide in house prices might be losing momentum in March?
There was a tiny suggestion that February saw hints of a slowing in the rate of fall, but it would see the signs were a little more solid last month.
In fact, while home prices recorded their 17th consecutive month of falls in March, the rate of decline could be easing even as it spreads.
Figures from CoreLogic showed a 0.6% decline in property prices across the country in March, with Sydney recording a 0.9% drop and Melbourne falling 0.8% as Brisbane and Darwin shed 0.6%.
There was no change in Canberra and booming Tasmania saw a rise of 0.6%.
The March drop in average Australian home prices was the smallest of the month-on-month declines since October last year.
And economists again pointed out the big and consistent falls are happening in Sydney and Melbourne where prices rose the most, and within those markets prices are falling in the most expensive suburbs where prices had soared.
“While the pace of falls has slowed in March, the scope of the downturn has become more geographically widespread,” CoreLogic analyst Tim Lawless said in yesterday’s statement.
Of the 46 capital city sub-regions monitored by the real estate analysis company only seven areas were able to avoid annual falls – a dramatic shift from the 30 areas holding up in positive territory at the same time last year.
The AMP’s Chief Economist, Dr Shane Oliver wrote in a note yesterday that he had doubts about the slower rate of fall in March.
He asked in his not “Is the slowing in momentum in monthly capital city average price declines (from -1.3% in December to -1.2% in January to -0.9% in February to -0.7% in March for the capital cities) and the rise in Sydney and Melbourne auction clearance rates from their December lows a sign that the property market is getting close to stabilizing (sic) helped perhaps by improved affordability, easier credit with the Royal Commission out of the way and optimism about the prospect of rate cuts?
“Possibly, but we remain doubtful and inclined to see it as just a bounce. The bounce in auction clearance rates from their December lows looks to be seasonal, the average auction clearance rates seen in March in both Sydney and Melbourne were the lowest March averages on records dating back to 2007.
“The moderation in house prices declines may also be seasonal with for example a similar slowing in the momentum of average capital city price falls a year ago (from -0.5% in December 2017 to -0.1% in March 2018) only to see price falls accelerate again, sales volumes continue to weaken from a year ago, the nearly five year decline in Perth and Darwin property prices has seen several phases where price declines slowed then accelerated again, while we see the RBA cutting rates this year it’s still likely to be several months way and more fundamentally the negatives driving the falls in property prices remain in place,” Dr Oliver wrote.
