Housing prices have fallen 1% in the December quarter, according to the latest figures from the Australian Bureau of Statistics.
According to the figures, the weighted average of house prices across eight capital cities fell 1% in the quarter, after falling 1.2% in the previous quarter.
Home prices are now down 4.8% compared to the same period in 2010.
Brisbane’s average price fell by the highest amount, down 2.5% for the quarter and 6.7% for the previous 12 months. Sydney prices only fell by 1% in the quarter and by 2.7% over the year.
Melbourne prices fell by 1.6%, while they had also fallen by 6.1% over the entire year.
The news on housing prices comes as new figures from the Housing Industry Association shows new home sales fell by 4.9% in December, on a seasonally adjusted basis.
The figures come after new home sales rose by 6.9% in November.
Chief economist Harley Dale said in a statement the sales were essentially flat for the quarter, up by just 0.2%.
“The intensification of bad news regarding Europe, question marks over labour market prospects in Australia, and avoidable delay and uncertainty as to whether banks were going to pass on the Reserve Bank’s second rate cut conspired to drive a fall in new housing contracts,” he said.
“Short-term monetary and fiscal policy stimulus together with a revitalised program of longer-term structural reform is required in early 2012.”
“Such action would instill confidence in the sector during what is a very good time to build a new dwelling for those who are financially set to take that decision.”
The Australian sharemarket has opened flat this morning, following weak leads from offshore markets.
The benchmark S&P/ASX200 index was down 12.3 points or 0.3% to 4250.4 at 12.10 AEST, while the Australian dollar was down to $US1.06c after disappointing economic data out of the United States.
There, the Dow Jones Industrial Average fell 20.8 points or 0.2% to 12,632.9.
Manufacturing activity increased in January, according to the latest figures from the Australian Industry Group – PwC performance of manufacturing index.
The index itself rose 1.4 points to 51.6, above the 50-point level separating expansion from contraction.
“Respondents cited ongoing global economic uncertainty and strong overseas competition as factors inhibiting growth in January,” chief executive Heather Ridout said in a statement.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
