New data suggests that the worst may be over when it comes to rising property prices, with property values falling slightly during September.
The RP Data CoreLogic September Home Value Indices, which is set to be released on Wednesday, reveals that property prices have cooled during September despite clearance rates remaining consistently above the 70% mark on a weighted capital city basis.
The Index recorded a 0.3% fall in property values across the five largest capital cities over the first 26 days of September. However, this trend has been improving since the middle of the month, which means the market is likely to flatten out by the end of September.
RP Data research director Tim Lawless says the levelling in growth conditions is welcome after a strong result over the winter months, where capital city dwelling values were up 4.2%.
“The September index release will bring the quarterly result back to around the 2.5% mark, which is still a strong result but a healthy reduction from the higher rates of capital gain recorded over the winter months. With the debate around sustainability of dwelling values heating up, the softer September result should be viewed as a welcome evolution in the housing market although, it remains to be seen whether these softer conditions will persist throughout the rest of Spring,” he said.
“The reduction in capital gain over September can largely be attributed to a slowing of growth in Melbourne and Perth, with both of these capitals likely to record a negative result over the month of September.”
More details will be released with the results on Wednesday.