Dwelling values have fallen by two per cent since the Illawarra housing market peaked in September 2017, new figures have indicated.
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Property data, reports and analytics group CoreLogic released its September home value index results this week.
The report indicated that overall, Australia’s housing correction has marked its 12-month anniversary, with values down 2.7 per cent since peaking in September last year.
According to CoreLogic, half of Australia’s capital cities saw values track lower over the past 12 months.
The remaining capital cities, as well as regional markets, have recorded a slowdown in the annual pace of growth as the housing downturn becomes more broadly based.
Mr Lawless said that regional markets, where housing values have generally been more resilient to falls than in the capital cities, are now showing more challenging conditions.
“The declines across the Illawarra market have been gradual and substantially less relative to Sydney where values peaked a bit earlier and have since fallen by 6.2 per cent,” CoreLogic’s head of research Tim Lawless said.
“The local unit market has been slightly weaker relative to houses, with values down 2.7 per cent (to $544,860) over the past 12 months while house values are 1.8 per cent lower (to $711,409).”
Mr Lawless said the resilience to larger falls can likely be attributed to stronger housing demand, thanks to better affordability across the regions compared with Sydney.
He said the median dwelling value across the Illawarra region is currently $664,000, compared with Sydney’s at $848,000.
“Buyers are likely motivated by the lower price points relative to Sydney, as well as the lifestyle aspect of the region and range of commuting options,” Mr Lawless said.
“Looking forward, it’s likely that dwelling values will continue to drift lower due to ongoing credit rationing and a slowdown in investment activity.”