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Matthew Hassan, analyst at Westpac, notes that the Australian dwelling prices continued to decline in April, albeit with the pace of slippage again showing signs of moderating.

Key Quotes

“The CoreLogic home value index, covering the eight major capital cities, fell 0.5% in April following a 0.7% fall in March, a 0.9% fall in February and average monthly falls of 1.2% over the previous 3mths. While much of the initial moderation in monthly declines appeared to be due to seasonality, the April update shows a clearer shift over and above seasonal variations.”

“Prices nationally are down 8.4%yr and are now 10.3% below their September 2017 peak. The current price adjustment has now extended for 19mths putting it on a par with the much shallower 2010-11 correction.”

“The annual pace of price decline is tracking at -10.9%yr in Sydney and -10%yr in Melbourne with cumulative declines of 14.5% and 10.9% respectively. Despite this, decline have only unwound the strong price gains seen in 2016-17 with prices in both cities at levels seen around mid-2016 and 20-25% above their levels seen five years ago in 2014 – outperforming other major capital cities over the period as a whole.”