Property prices flat or declining in June quarter: APM

House prices continued to stagnate or decline across the country in the June quarter, with only Sydney's house, Darwin’s unit and Adelaide unit markets showing the faintest positive sign of life. Sydney’s 0.1% rise to $644,658 puts it nearly $100,000 above the national median house price.

The median national house price has fallen 0.6% to $546,121 during the June quarter, according to Australian Property Monitors, with national unit prices down 0.8% to $404,753.

It represents a 2.4% annual decline for houses and a 2% annual decline nationally for units.

Melbourne remained stagnant over the quarter but was down over the year to June by 2.1% to $554,610. Unit prices in the Victorian capital fell marginally in the quarter by 0.7% to $394,842.

Brisbane house and unit prices fell for the second consecutive quarter, resulting in a yearly fall of 4.9% to $446,778 for houses and a fall of 3.9% for units $359,865. However, APM suggested the city continues to recover from the general disruption to its housing market as a consequence of the January floods.

Canberra’s house and unit markets both recorded surprising falls in the quarter, with house prices dropping 2.8% to $551,065, putting an end to a run of positive growth, and units falling 1.3% to $405,000.

“In the June quarter diverse local conditions had a more significant impact on median prices in each city, with these individual factors expected to have continued variable effects on growth in each market,” says Dr Andrew Wilson, senior economist at Australian Property Monitors.

“This is in contrast to the effect of national market conditions that have impacted prices across the board until recently.”

“The prospect remains however of increased buyer activity emerging through the spring selling season, as early signs are emerging of increased first home buyer and investor activity in most markets, albeit from a low base, that will help to encourage market activity and confidence,” Wilson says.