The rate of value decline across the most expensive properties is starting to slow
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Jun 20, 2019
The rate of value decline across the most expensive properties is starting to slow
The CoreLogic Stratified Hedonic Index has shown a slow down in the rate of value decline for the most expensive properties.
The CoreLogic Stratified Hedonic Index highlights the performance of the housing market across three segments.
These three segments are: the 25% of most affordable dwellings, the 50% of dwellings representing the middle market and the 25% of most expensive dwellings.
The analysis within this report is measuring the six month annualised change in dwelling values.
Nationally, from the market peak to the end of May ’19, the most affordable quarter has seen values fall by -1.4%, the middle of the market has seen values fall -6.6% and the top quarter has fallen by -11.6%.
The -1.4% fall across the lower quartile is the largest since Sep-18, the -6.6% fall across the middle of the market is slightly down on the previous month while the -11.6% fall across the top quartile is the second consecutive month in which falls have slowed and the smallest annual decline since Dec-18.
Combined capital cities
Low quartile values are -5.1% lower over the year, middle market values have fallen -8.3% and top quartile is -12.4% lower. The -5.1% fall is the largest since September 2008 and the -12.4% fall is the smallest since December 2018.
Combined regional markets
Values across the most affordable quarter of properties are -1.2% lower compared to a -1.6% fall across the middle of the market and a 6.7% fall across the top quartile (the largest fall since January 2012).
Over the past year, most capital cities and regional markets have been recording value declines. While values are broadly continuing to fall, the rate of these falls on a monthly basis has been slowing. After having seen much larger corrections than the other two segments (following a larger growth phase), the most expensive segment of the market is seeing its rate of decline slow. This is a trend that has played out before whereby premium housing values fall the fastest initially but also sees the falls cease earlier than other market segments. It is still early days but with the housing market expected to trough in late 2019, the premium housing sector may find a floor first and start to show some level of recovery before the other segments.
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