Fall in House Prices for Canberra and Perth

December 2008 Quarter Housing Data from homepriceguide.com.au reveal there were large falls in property prices for Canberra and Perth:

Sydney
In the December quarter Sydney house prices fell 0.7% and the unit market remained flat. Through the year, house and unit prices fell 4.2% and 3.8% respectively.

Canberra
The average price of a house in Canberra is $30,000 less than in December 2007. Over 12 months, house and unit prices have dropped by 6.7% and 2.6% respectively.

Melbourne
Through the year, house prices rose by a modest 0.9%, and unit values declined 1.5%.

Brisbane
In the past year house prices rose 0.4% and unit prices dropped 6.5%.

Adelaide
In the December quarter, house prices remained flat while unit values increased 2.1%. In the past year, house and unit prices rose 2.9% and 2.7% respectively.

Perth
House and unit prices fell 1.9% in the December quarter. Over 12 months, the picture was bleak, with house and unit prices falling 7.9% and 4.7%.

Liam O’Hara, Senior Economist for Australian Property Monitors said, “The December 2008 quarter housing and unit figures leave little doubt that the Australian residential property market is in trouble. Some capital cities have witnessed the largest price falls in years. This is the second consecutive quarter where values have either fallen or remained very sluggish.

“While the first home buyers’ share of the mortgage market increased in November 2008, these latest figures show that the Government’s first home buyers boost scheme has done little, thus far, to stem falling property prices.

“Australian property prices are unlikely to fall precipitously in 2009, as witnessed in the United States and the United Kingdom throughout 2008. Instead, Australian property market values will continue to slide modestly over the next two quarters. There is now a genuine belief, among even the most optimistic economists, that the current fiscal and monetary policy stimulus packages are not enough. Gross Domestic Product has come to a standstill and we have just witnessed the biggest spell of disinflation in over 10 years.”

Median House Prices
December Quarter 2008

City/Town	House Price $	12 Month % change
Sydney	536,021	-4.2
Perth	475,263	-7.9
Melbourne	447,161	0.9
Canberra	458,283	-6.7
Darwin	480,360	5.5
Brisbane	432,031	0.4
Adelaide	412,290	2.9
Hobart	285,831	-0.4