Biggest fall in house prices for 14 years

In the biggest quarterly fall since 2008, the national measure of property values fell a further -0.9% in July, taking the three month drop in values to -2.5%. In October 2008 values dropped by 3.4% when the market was in retreat from the global financial crisis (GFC).

CoreLogic research head, Nick Goodall, says demand remains constrained despite the easing of the CCCFA regulations early last month.

“Housing affordability remains significantly stretched despite values falling, with the combination of high prices, following a significant upswing in values, and increasing interest rates restricting the number of buyers who are able, let alone willing, to borrow the sums of money required to buy property,” he says.

“Loan-to-value (LVR) restrictions also sit at their tightest setting on record, with banks remaining below the allocated 10% speed limit. The increase in listings on the market over the past year or so has also switched pricing power towards buyers.”