Housing prices up just 0.1% in July, new Residex figures reveal

Housing prices grew by just 0.1% during July, according to new Residex figures, in yet another sign the property market is continuing to slow.

The new figures have emerged just one day after SQM Research founder Louis Christopher said property owners thinking of selling their homes should start looking for buyers now to escape the upcoming slowdown.

The new figures reveal prices grew by just 0.1% in July, following a 1.1% rise in June and a 0.6% in May, although growth was at an annualised rate of 7.5% over those three months and was up by 11.6% for the year.

The data also comes after recent RP Data figures revealed home prices dropped by 0.7% in June.

Sydney housing prices fell by 1.3%, following on from a 3% increase in June, with a median price of $668,000. Melbourne prices grew 1.2%, with an annualised growth rate of 18.8% and a median price of $592,000.

Brisbane prices fell by 0.7% following a number of softer months, with an annualised rate of just 4.4% and a median price of $464,500. Adelaide prices remained at a median of $409,000, while Perth prices rose 0.9% to a $490,000 median.

Westpac senior economist Matthew Hassan points out the Residex figures are yet another sign the housing market is slowing but it will take some time before a real trend can be confirmed.

“All price measures are showing a slowdown in price growth but the range of results for the most recent months is very wide – from the official ABS preliminary estimate which showed prices rising at a 13% annualised rate in quarter two to RP Data-Rismark’s measure which shows a very abrupt slowdown in quarter two with a 1.1% annualised decline in prices,” he said in a statement.

“We’re pretty sure the slowdown in prices has been more abrupt than the ABS estimate and tend to favour the picture presented by the RP Data-Rismark series but would ideally like to see further confirmation from other private sector measures. This, it seems, may take a few more months yet.”