Home values dropped by 0.14 per cent nationwide in February – the smallest monthly fall since interest rates started rising in May last year.
The sharp slowdown in house price declines in February is more a “false dawn” than a fundamental shift in the housing market, experts say.
Sydney home values even managed to eke out a small 0.3 per cent gain during the month, helped by the stronger performance in the upper end of the market. But the improving trend might not last, as higher interest rates, weakening economic conditions and fading consumer confidence dent demand, Mr Lawless says.are helping put a floor under price falls, but the downside risks still seem to be significant, when you consider interest rates will be moving higher,” he said.
“It’s clear that some sort of market stabilisation is happening, particularly in Sydney, but I don’t think it’s sustainable. I think it’s probably a false dawn,” Dr Oliver said. “They’re continuing to worsen. And that says to me, this is a false dawn, not the start of a reversal. The improved result is more about strangled supply than it is about a sea change in fundamentals,” Mr Richardson said.“We’re still about to get at least two and quite possibly three rate rises and then the reset of 880,000 fixed rate loans. Wage growth might have lifted, but it’s lifted from terrible to bad. So, there’s simply not enough shift in the fundamentals to move prices into recovery.
Adelaide has dropped by 1.4 per cent, Canberra 2.7 per cent, Perth 0.2 per cent and Darwin 1 per cent. Hobart was the worst performer with a 4.9 per cent decline in home values.
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