Home prices plunge in Melbourne

 Home prices plunge in Melbourne

House prices around the country have generally picked up in April, compared to the previous month. 

Melbourne, however, has taken a hit. 

According to CoreLogic Home Property Value Index, the statistics show that in Melbourne the change in housing values from March to April was -0.3 per cent, whereas nationwide the prices increased 0.3%.

Despite the continued growth of house prices, the speed of which they have done so has slowed down. 

Although housing values were generally slightly positive over the month, the trend has clearly weakened since mid-to-late March, when social distancing policies were implemented and consumer sentiment started to plummet

Tim Lawless, the head of research at CoreLogic

One of the reasons behind the drop in Melbourne prices might simply be that the risk is higher in the larger cities. 

Sydney and Melbourne arguably show a higher risk profile relative to other markets due to their large exposure to overseas migration as a source of housing demand, along with greater exposure to the downturn in foreign students, stretched housing affordability and already low rental yields that are likely to reduce further on the back of rising vacancy rates and lower rents

Mr Lawless

Sydney, however, had the highest growth rate out of the cities surveyed, increasing 0.4% in the month of April.

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