Search ForexCrunch

Matthew Hassan, Research Analyst at Westpac, explains that the Australian housing market correction accelerated in November as the CoreLogic home value index, covering the eight major capital cities, fell 0.9% in the month to be down 5.3%yr.

Key Quotes

“This is the weakest monthly reading in the price correction to date and the biggest monthly decline since 2008.”

“Seasonality looks to have accentuated the November fall slightly. Markets are typically a touch softer late in the year as buyers dry up and sellers become more urgent to transact ahead of the Dec-Jan low season. This effect looks to be worth about 0.1ppt of the November decline. However, this does not change what is an unambiguously weak picture for the month.”

“More generally, the spread of weakness across price tiers and geographies has continued to widen, albeit only marginally. Our estimates suggest 80% of all dwellings (by share of dwelling stock) have recorded price declines over the last 6mths with 62% recording annual price declines. Around 37% of properties are experiencing annual price declines of over 5%yr, with closer to 60% in NSW.”