Home values fell the most in at least six years in May defying Reserve Bank efforts to spark a recovery in the nation’s lacklustre housing market with interest rates cuts. Melbourne led declines.

Residential property values slid 1.4 per cent across all capital cities in May, and are now down by more than 5 per cent from a year earlier, according to property analysts RP Data. The monthly fall was the biggest since the series began in June 2006, Bloomberg analytics show.

Melbourne has struggled more than most on the home front, falling another 2.7 per cent last month.

Over the year to May, Melbourne home values have fallen by more than 8 per cent. The only other city where they fell further, was Hobart.

Sydney, too, posted falls after defying national trends for some time. In May, home values in the harbour city were down 1.2 per cent, resulting in a 3.6 per cent fall over the year.

The sombre statistics follow news of a national slowdown in home building. Construction of new homes tumbled in April, with

1, and 25 basis points on June 5, and Westpac says borrowers should expect another 100 basis points cut by the end of the year as the central bank battles to reignite growth in the economy.

Until recently Brisbane’s values were falling most but last month they slid only 0.3 per cent.

Much of the weakness in real estate values was in detached housing rather than apartments, RP Data’s research director Tim Lawless said.


Saturday June 9th, 2012

2.00 AUCTION 26-28 Inlet Crescent
3.00 – 3.30 126 Harvey Street, Anglesea

Sunday June 10th, 2012

11.00 – 11.45 Narani Way
12.00 – 12.30 24 River Road
12.30 – 1.00 25 Alice Street
1.00 – 1.30 1 Werona Road
1.30 – 2.00 28 Old Neuk Road
2.00 – 2.30 19 Ridge Road

Monday June 11th, 2012

12.00 – 12.30 15 Aireys Street
12.30 – 1.00 47 Aireys Street
1.00 – 1.30 1 Panorama Drive

James Worssam
0418 585 815

Leave a Reply

Your email address will not be published. Required fields are marked *