Home prices have come down even further for the 11th month in succession in Australia overall. August 2018 saw prices slipping further in Melbourne while they remained on the weaker side in Sydney. This trend may be seen for some more time on account of the pressure on mortgage rates across several banks in the country. However, investors and end users will be happy to snap up properties across Australia at comparatively lower prices and this will again lead to higher demand, thereby scaling up price levels in the future as per experts.
As per reports, the overall national home price index came down by 0.3% last month and values went down by 0.4% for the capital cities cumulatively while they came down by 2.9% for the year overall. Prices outsides major cities came down by 0.2% last month although they are still more than the year-on-year average by 1.6%. The weak prices are majorly attributed to factors like tighter conditions for availing credit.
Regulators have come down heavily on risky lending from financial institutions, particularly in case of interest-only loans. The mortgage rates have already been increased by Westpac Banking for margins. Sydney has seen prices drop by around 5.6% for the entire year while this is 1.7% for Melbourne. Both cities account for a whopping 60% of the entire housing market in Australia in terms of value and 40% in terms of figures.
