More worrying than the 0.5% q/q seasonally adjusted fall in the ABS measure of Australian house prices in the fourth quarter of last year (+0.2% q/q unadjusted) is that the subsequent rebound is already running out of steam. After rising by an impressive 1.1% m/m in February, the daily data from CoreLogic suggest that seasonally adjusted house prices are on course to fall by around 0.1% m/m in March. That would be consistent with the annual growth rate easing to 7.0%. The recent softening in home sales and fall in sentiment towards housing as an investment suggests that house price inflation will slow further yet.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.