Australia house prices fall for 11th straight month as downturn deepens

Prices of housing in Sydney, the epicenter of the recent property boom, have now fallen 5.6 per cent from a year earlier.
Prices of housing in Sydney, the epicenter of the recent property boom, have now fallen 5.6 per cent from a year earlier. PHOTO: REUTERS

SYDNEY (BLOOMBERG) - Australian housing prices fell for an 11th straight month in August, and further declines are likely as the peak selling season starts.

National dwelling values dropped 0.3 per cent last month, led by declines in Sydney and Melbourne, according to CoreLogic Inc. data released on Monday (Sept 3). Prices in Sydney, the epicenter of the recent property boom, have now fallen 5.6 per cent from a year earlier.

"Looking forward, there are a few wildcards that could create some headwinds for housing market conditions," CoreLogic said in the statement.

Westpac Banking Corp's move last week to raise home loan rates "is likely to send a chill through the housing market," CoreLogic said. Tight credit conditions and record household debt could also damp confidence as the peak spring selling season starts.

"With so many balls in the air, it's likely the spring season will be a challenging one for the housing sector," CoreLogic said.