THE housing slump led by Sydney and Melbourne could be a windfall for Brisbane buyers, with home values in the Queensland capital dropping for a second straight month.
The CoreLogic January home value index found dwelling values in the river city fell 0.2 per cent in the first 29 days of the month to a median of $493,500.
It follows a drop of 0.2 per cent in December.
CoreLogic head of research Tim Lawless said the silver lining for Brisbane was that buyers were in now in the box seat, with homes more affordable and stock levels higher than they were a year ago.
“We’ll probably be looking at Brisbane having a flat year, with no growth at all in dwelling values, which in some ways is positive with the market in a downturn,” Mr Lawless said.
“There’s plenty of stock to choose from and buyers are looking at relatively affordable housing compared to Sydney and Melbourne, and because there’s lots of stock to choose from, there’s no urgency — buyers can negotiate quite hard.”
The slowdown is being led by heavier price falls in the nation’s two biggest housing markets.
in the month to date.
Mr Lawless said the results showed the housing market slowdown was not just restricted to price corrections in Sydney and Melbourne.
“The first month of the new year has seen housing market conditions continue along the weak trajectory seen throughout 2018,” Mr Lawless said.
“The falls continue to be led by Sydney and Melbourne, while the early indications were also pointing towards a monthly fall in dwelling values across Adelaide, Perth and Brisbane.”
National dwelling values fell 1.1 per cent over the first 29 days of January, while Sydney values dropped 1.3 per cent and Melbourne values slid 1.6 per cent.
Home values across the five major capital cities declined 7.2 per cent over the past year.
Mr Lawless said tight credit conditions remained the key factor in slowing the housing market, while other factors such as a softening in consumer sentiment, higher supply and less investment were also having an impact.
The full set of CoreLogic index results will be released today.
CORELOGIC HEDONIC HOME VALUE INDEX
Sydney Jan. -1.3%; Qtr -4.4%; Year -9.6%
Melbourne Jan. -1.6%; Qtr -4%; Year -8.2%
Brisbane Jan. -0.2%; Qtr -0.3%; Year 0%
Adelaide Jan. 0.4%; Qtr -0.1%; Year 0.9%
Perth Jan. -0.9%; Qtr -2.6%; Year -5.5%
Combined 5 capitals Jan. -1.1%; Qtr -3.4%; Year -7.2%
(Source: CoreLogic, based on first 29 days of January 2019)