CoreLogic’s national Home Value Index (HVI) moved down 1.0 per cent over the month to be 7.0 per cent, or approximately $53,400, below the peak value recorded in April.
The decline comes after the recent upswing that saw national housing values surge 28.6 per cent higher, adding roughly $170,700 to the value of the average dwelling.
The rate of decline has been easing since the national index dropped by 1.6 per cent in August, although values are continuing to trend lower.
According to CoreLogic’s research director, Tim Lawless, the moderating rate of decline is mostly emerging from Sydney and Melbourne markets but is also observable across most smaller capitals and regional areas.
“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 per cent. That has now been reduced by a full percentage point to a decline of -1.3 per cent in November. In July, Melbourne home values were down -1.5 per cent over the month, with the monthly decline almost halving last month to -0.8 per cent,” he explained.
“The rate of decline has also eased across the ACT (from a -1.7 per cent fall in August) and is no longer accelerating in Brisbane. Most of the broad rest-of-state markets have also seen the pace of declines decelerate.”
Mr Lawless explained that the overall muted figure can be attributed to the apparent end of the initial uncertainty to buy in a higher interest rate market and the consistently low advertised stock levels.
“However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched,” he added.
Findings revealed that Sydney remained the only city where housing values have fallen by more than 10 per cent from their peak after values rose by 27.7 per cent before declining by over 11 per cent.
In Melbourne, CoreLogic found that due to a weaker upswing, which saw values add only 2.8 per cent from the onset of COVID-19, if housing values continued to fall at the current pace the city’s dwelling values could fall to pre-COVID-19 levels by March next year.
Moreover, Brisbane and Hobart both led the capital cities’ monthly rate of decline in November at a loss of 2.0 per cent, while Perth values saw no change and Darwin nudged 0.2 per cent higher over the month.
Across dwelling types, unit markets saw every capital city apart from Hobart maintain relative resilience, CoreLogic found.
In November, capital city unit values were down 0.6 per cent, while house values declined at twice the pace with a 1.2 per cent drop.
Mr Lawless suspected that this trend could be attributed to moderate gains during the upswing, but that it also reflected the unit sector’s more affordable price point when borrowing capacities are reduced.
“There is still the possibility that the pace of declines could reaccelerate, especially if the current rate hiking cycle persists longer than expected. Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire.”
Most other capital cities and rest-of-state regions are still recording housing values at least 25 per cent above March 2020 levels.
