The CoreLogic RP Data home value index is pointing to an on-going slowing in house prices. So far in November, house prices have actually fallen 0.3 per cent, with the annual increase easing to 8.6 per cent from levels near 12 per cent a few months ago. Interestingly, in the almost 8 months since the end of March, house prices have risen by just 3.5 per cent - an annualised rate of increase of around 5.25 per cent. It is not only possible but highly likely that during the first half of 2015, annual house prices growth will be well under 5 per cent and possibly - probably - even close to zero. Of note, in the past three months, house prices have fallen 1.7 per cent in Melbourne and have recorded zero change in Adelaide. Prices in Perth are up a paltry 0.4 per cent and Brisbane, just 0.6 per cent. House prices in these cities are just fine. See the full article here: (VIEW LINK)
I went to four open inspections and an auction on the weekend to go and have a look at the activity levels myself. The open inspections were suprisingly quiet even the owner who I spoke with said they had been a bit disappointed with the level of interest in the property (in Redfern). There were four properties for sale on the one street which usually experiences slow turnover. It definitely felt like buyer demand was now being met with a supply response.