Dwelling values have experienced their smallest national month-on-month fall in a year, according to CoreLogic.

The pace of Australia’s housing downturn eased further in May, according to CoreLogic.

The research firm’s May 2019 home value index results showed national dwelling values were down 0.4% over the month – the smallest month-on-month fall in a year.

Although at a broad level dwelling values are still trending lower across the regions of Australia, the pace of declines eased further in May, continuing a trend that has been evident since the beginning of 2019.

At a glance:

• CoreLogic’s May 2019 home value index results showed national dwelling values were down 0.4 per cent over the month – the smallest month-on-month fall in a year.
• CoreLogic Head of Research Tim Lawless said the improvement was primarily being driven by a slower rate of decline in Sydney and Melbourne.
• Adelaide was the only capital city to avoid a decline in dwelling values, while values in ‘rest-of-the-state’ areas within South Australia, Tasmania and Northern Territory also rose.

CoreLogic head of research Tim Lawless said the improvement was primarily being driven by a slower rate of decline in Sydney and Melbourne where housing values were previously falling at the fastest rate of any capital city.

“Sydney values were 0.5% lower over the month while Melbourne values were 0.3% lower; the smallest decline in values across both cities since March last year,” he said.

“In other cities, where housing market conditions have generally been more resilient to a downturn, the trend is the opposite.”

Adelaide (+0.2 per cent) was the only capital city to avoid a slip in housing values across the month, and in ‘rest-of-the-state’ areas, South Australia, Tasmania, and Northern Territory were the only regions where house values rose in May.

Mr Lawless said the slower rate of decline was visible in higher auction clearance rates through the month, with Sydney clearance rates breaking the 60 per cent for the first time in a year during the final week of May, while Melbourne clearance rates have remained about 60 per cent for three of the past six weeks.

Source: CoreLogic

“Although clearance rates remain low relative to several years ago when the housing market was much stronger, the improved auction performances align with the easing rate of decline,” he said.

Since peaking in October, 2017, national dwelling values have reduced by 8.2 per cent, with values across the combined capitals index down 10.1 per cent.

According to CoreLogic, regional values have been more resilient, falling by 3 per cent since peaking.

Larger capital city falls have been recorded in Darwin (-29.5 per cent) and Perth (-19.2 per cent), as well as regional WA (-32.5 per cent), where the mining downturn has led to persistently weak economic and demographic conditions.