Cooling Off

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A cooling off is occurring in Sydney's Eastern Suburbs residential market for properties especially at lower price points.
The eastern suburbs market is currently witnessing some mixed results which vary between market segments and property types, according to the June report from the valuation firm Herron Todd White.
The first quarter of 2018 started fairly stably however more recently has seen some softening in values, extended selling periods and auction clearance rates falling to 68.3% as of 27 May, compared to 79.4% at the same time last year, t.he report noted
The stronger sector of the market is currently good quality prestige houses in the $5 million to $10 million price range.
The reported quoted prominent eastern suburbs agent, Alexander Phillips, stating that “it’s harder to sell a $900,000 apartment by the beach than a house for $8 million in Bellevue Hill in the current market”.
As he points out, it’s just harder to borrow money, which is reducing the buying power for people looking for apartments.
“If you had a two bedroom apartment in Bondi open for $900,000 you’d get four or five groups, but if you had a house priced at $6 million or $8 million in Bellevue Hill you’d get 20 groups... there are just more buyers at that price point at the moment,” he said.
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6 Latimer Road, Bellevue Hill which sold on 12th May for approximately $8,600,000 after the first open home and three days on the market (above). 
"While the prestige housing sector remains somewhat stable, the general unit market is showing signs of market resistance compared to previous years", according to the valuation firm.
A Bellevue Hill unit was originally passed in at auction, then set an asking price of $929,000 which was further reduced to $890,000 and was then sold for $870,000.
"Although not a significant reduction, this is something very rarely seen in the eastern suburbs over the past several years," HTW noted.
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10/175 Victoria Road Bellevue Hill is a typical 2 bedroom, 1 bathroom art deco unit (on a busy road) sold on 4th May for $870,000 after 85 days on the market (above).
Buyers have a more reserved attitude and HTW is forecasting that this will continue for the remainder of the year. 
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Cooling off occurring in Sydney's Eastern Suburbs residential market prices: HTW 

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A cooling-off period of 5 days applies to contracts for the sale of residential property. It will start the day the buyer receives a copy of the contract (signed by both parties).
Please note:
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<li>For contracts that arrive on a weekend or a public holiday, the cooling-off period starts on the next business day.</li>
<li>The cooling-off period still begins if a representative takes it on the buyer’s behalf.</li>
<li>If there’s a dispute, the seller (or their agent) must prove when they delivered the contract.</li>
</ul>
The cooling-off period ends at 5pm on the final (5th) day of the cooling-off period. After this, the buyer must follow through on the contract and buy the property. This remains subject to the terms of the contract.
Exempt sales
A contract is exempt from the cooling-off period for:
<ul>
<li>a sale by auction</li>
<li>a follow-up sale after an unsuccessful auction (before 5pm on the second business day), in which the buyer was a registered bidder</li>
<li>an option contract (or a sale contract formed as the result of an option contract).</li>
</ul>
The cooling-off period also doesn’t apply if the buyer is:
<ul>
<li>a publicly listed corporation (or their subsidiary)</li>
<li>the State or a statutory body</li>
<li>buying at least 3 lots at the same time (whether or not in the same contract).</li>
</ul>
Cancelled sales
To cancel the sale contract, the buyer must give you (or your client) written notice by 5pm on the 5th day. They can deliver it in person, by email or fax.
If the buyer chooses to cancel during cooling-off period, the seller:
<ul>
<li>may deduct a penalty of up to 0.25% of the purchase price from the deposit</li>
<li>will need to refund the rest of the deposit within 14 days.</li>
</ul>
Waived or shortened period
The buyer can choose to waive or shorten the cooling-off period. They will need to put this in writing. 
This document will need to state that:
<ul>
<li>they waive the cooling-off period entirely</li>
<li>the cooling-off period will last until 5pm on a particular day.</li>
</ul>
The deposit
The buyer must pay the deposit at the time set out in the reference schedule of the contract. The seller’s agent is usually the deposit holder. If this is you, you must put the deposit in your trust account.
You must not access this money until:
<ul>
<li>the seller is entitled to the money on settlement day</li>
<li>the buyer is entitled to the money because they lawfully cancelled the sale contract.</li>
</ul>
For more information, <a href="https://www.qld.gov.au" target="_blank">click here</a>.
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Property 101: Cooling-off period for Queensland residential property contracts

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Australian housing, cooling not crashing: HSBC's Paul Bloxham

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Treasury secretary John Fraser has welcomed the cooling off in the country's biggest housing markets. 
After "rapid" growth in Sydney and Melbourne prices in recent years, Fraser said the market appeared to be slowing.
He told the Citi investment conference they were the early signs the curbs on riskier bank lending were doing their job.
There were also signs homebuyers were responding by moving to lower-priced cities and regional centres.
Fraser acknowledged the build-up in household debt had accompanied strong house price growth in recent years, but signalled he was not "too alarmed" by the trend.
"It's good to see some of the recent moderation in house price growth, and while it's too soon to make a final assessment of the impact of APRA's March 2017 macroprudential measures, the signs at the moment are promising," Mr Fraser said at Citi's investment conference in Sydney.
When asked is he still held the <a href="https://www.smh.com.au/business/the-economy/treasury-boss-john-fraser-fears-about-investment-in-housing-points-to-home-renovation-shows-20150601-ghdx0t">view that Sydney housing was in a "bubble"</a>, as he said two years ago, Mr Fraser referred to "welcome signs of slowing" in the market.
He also emphasised the very different market conditions across the regions, with signs Western Australia's market might be starting to recover after a sharp slump triggered by the mining bust."These things are cycles, and we are perhaps starting to see that cycle playing out," Mr Fraser said.
Fairfax Media reported Fraser also referred to strong growth in the population in regional centres such as Bathurst, Geelong, Dubbo and Ballarat, saying people were responding to the very high cost of housing by moving outside the largest cities.
"I'm getting the feeling that a lot of people are now starting to react to some of the high house prices in the east coast capital cities by thinking about relocating to other capital cities or regional centres," he said.
 
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The housing shift to cheaper cities is happening: John Fraser

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The REINSW has slammed low upfront fee disruptive agencies.
"Consumers are at risk of not achieving the best price for their property if they use the services of companies that charge an upfront fee," according to the Real Estate Institute of New South Wales president Leanne Pilkington.
She said with the cooling Sydney market consumers are at risk of paying even when their property does not sell. “There had been a lot of press surrounding companies that offer a flat fee upfront to sell a consumer’s home rather than the traditional commission model,” she said.  “There is no motivation or incentive for these agents to take a professional approach in achieving the best possible result as they have already been paid regardless of the outcome,” she said.  Ms Pilkington said in buoyant markets upfront fees are attractive to consumers seeking to save money but they are not significantly tested because of the high demand and low supply.  “As the peak body REINSW is therefore concerned for sellers in this changing market who are vulnerable to such low cost high risk strategies that have the potential to leave them in the lurch.  “We encourage consumers to explore a full range of options when it comes to selling their most valuable asset: don’t just go for the lowest cost option as the risks are too high if you get it wrong. Never take anything on face value, do your research and ensure that you are making the best decision. “As the market cools the true value of an experienced real estate professional can really be seen,” Ms Pilkington said.
The press release did not name any agencies, but the most recent arrival has been Purplebricks.
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Last year Hayden Groves, the president of the Real Estate Institute of WA, claimed these disruptive agencies offered "poor value to consumers."
Groves said Purplebricks' fixed fee of $4500 sounded "enticing to sellers.
"Then you are effectively on your own," he wrote.
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Purplebricks, an online property platform that claims to have a unique low-cost model, <a href="https://www.urban.com.au/news/64375-purplebricks-low-cost-model-not-working-in-australia-first-national-ceo" target="_blank">was also attacked last year</a> by a leading Australian property industry executive, the First National Real Estate chief executive Ray Ellis.
“Australians understand the extra value that a professional agent brings to the marketing, negotiation and sale of property, and therefore continue to choose agents to maximise their sale price," said Ellis.
Purplebricks opened its <a href="https://www.urban.com.au/expert-insights/investing/60186-purplebricks-arrives-in-sydney" target="_blank">Sydney office late in 2016</a>.
A Purplebricks agent was accused by Fairfax Media of "a lack of professionalism from start to finish" in an article on a Sutherland Shire listing where the vendor hoped to save more than $33,000 on the $1.85 million to $1.95 million property offering.
There was an upfront $12,000 outlay - a $5500 fixed-fee, $1370 in August auction fees plus money spent on additional advertising.
The debt was reportedly in the hands of Purplebricks debt partner RateSetter, after the vendor opted to defer payment until the end of her campaign.
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"I don't see why I should have to pay all that money for no result and a lack of professionalism from start to finish," she alleged.
The property was sold in November by a traditional agency, but only after the price guide was dropped to $1.5 million to $1.6 million. 
Purplebricks co-founder and CEO Michael Bruce defended the agent's conduct saying he "gave comprehensive and sound advice to our customer based on their extensive experience, knowledge of market conditions and after undertaking a comparative analysis.
"It is ultimately the customer's decision, despite the advice, what price they wish to market the property for," Michael Bruce noted.
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No motivation for best result, as REINSW slams upfront fee disruptive agencies

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Over 40 percent of Finder.com.au experts and economists forecasted a five to six percent price fall in Sydney by the end of 2018
Some of the panellists of the June RBA cash rate survey suggested there could be even bigger falls in the harbour city. 
14 percent predicted falls over six percent.
Only seven percent forecasted rising property prices in Sydney.
23 percent of panellists suggested there will be falls of over six percent in Brisbane over the year.
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Melbourne was forecast for a less extreme price drop with 50% of experts and economists expecting values to dip between ​3% and 4%​. 
Finder.com.au insights manager Graham Cooke says homebuyers may want to consider purchasing in a cooled market. 
“For those mulling over buying their first property, this year could be a good time to snap up a bargain if prices do take a tumble. 
“With some heat removed from the market, cheaper dwelling prices could be a first home buyer’s ticket into the property market. 
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“A cheaper price tag means they’ll have a smaller deposit, meaning they can jump onto the property ladder sooner,” he says. 
The analysis shows Brisbane, Perth and Darwin housing prices are also tipped to fall this year, with no experts or economists indicating a rise in Darwin. 
Brisbane housing price are most likely to plummet with 23% of respondents forecasting a fall of over 6%, which is the greatest predicted fall among the capital cities. 
“This is also good news for those looking to buy in Brisbane, but things won’t be as peachy for sellers in the Sunshine State,” Mr Cooke says. 
On the other hand, Adelaide and Hobart were identified as growth markets among the panel with 55% of respondents estimating 1-2% growth in Adelaide, while a combined 72% are forecasting Hobart prices to lift by 1-2% or 3-4%. 
“The quieter cities of Adelaide and Hobart could be hot spots for investors wanting to unlock capital growth, or for homebuyers looking to put their property on the market,” he says.
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Here’s what the Finder.com.au experts had to say: 
Jordan Eliseo, ABC Bullion: ​"The RBA will keep rates steady at their upcoming meeting, though we remain convinced the next move will be an interest rate cut. Local economic data remains soft at best, whilst fears over house price declines, and a more subdued environment for private sector credit growth continue to build, fuelled by some of the more troubling revelations from the Banking Royal Commission. The positive narrative around accelerating global growth is also starting to fade, with political uncertainty in Italy (and by extension Europe) unlikely to help." 
Tim Nelson, AGL Energy:​ "Previous meeting indicated that there wasn't a strong case for near-term adjustment." 
Shane Oliver, AMP Capital: ​"Basically nothing has changed. Signs of stronger investment, booming infrastructure spending, strong export volumes and the RBA’s own forecasts argue against a cut but uncertainty around consumer spending, the slowing Sydney and Melbourne property markets, tightening bank lending standards and the slowing Sydney and Melbourne property markets argue against a hike. So no case to move!" 
Alison Booth, ANU: ​"Fundamentals haven’t yet changed sufficiently to warrant altering the interest-rate." 
John Hewson, ANU: ​"No clear evidence to support a tightening especially given household debt." 
Jonathan Chancellor, Property Observer:​ "The RBA won't be wanting to use its lever quite yet, as the economy is in a challenging state of transition. " 
Malcolm Wood, Baillieu Holst:​ "Sluggish domestic economic data and inflation at the low end of the target range." 
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Paul Dales, Capital Economics:​ "Economic conditions are not strong enough to warrant higher rates and the RBA is becoming concerned that the Banking Royal Commission will result in some households and businesses finding it harder to get credit. The RBA won't want to raise the price of credit at the same time." 
Saul Eslake, Corinna Economic Advisory: ​"Data releases since the last Board meeting are unlikely to have changed the Board's belief that it will be some time before spare capacity in the labour market has declined sufficiently, and economic growth picked up sufficiently, to warrant taking the first step back towards more 'normal' monetary policy settings." 
Peter Gilmore, Gateway Bank Ltd: ​"Some of the fundamentals are beginning to show signs of lining up, but it's still too soon to move." 
Mark Brimble, Griffith Uni: ​"Nothing has sufficiently changed." Peter Haller, Heritage Bank:​ "Market conditions do not warrant a change. The RBA is 
comfortably on hold for the foreseeable future." 
Shane Garrett, Housing Industry Association: ​"The economy is gathering pace in some areas without generating an increase in inflation - this means that no change in the RBA's cash rate is warranted for the moment." 
Alex Joiner, IFM Investors: ​"There's been no shift in the economic outlook - this is particularly true in the labour market where spare capacity remains and therefore no meaningful acceleration of wages growth should be expected. In this way population growth remaining strong is a double-edged sword for the RBA in so far as it supports economic growth but keeps the unemployment rate from declining. Indeed the RBA does not expect full employment to be achieved over its forecast horizon." 
Michael Witts, ING:​ "The RBA has indicated that rates will remain on hold for an extended period." 
Leanne Pilkington, Laing+Simmons:​ "The housing market, from a number of key indicator perspectives, has peaked. Prices in select pockets are easing, clearance rates have dropped, and residential building approvals for April showed a 5% decline, which is more pronounced than most expected. So we’re seeing the market correct at the moment, but in a sustainable, soft-landing way. Raising interest rates prematurely could jeopardise this soft landing, so we expect the RBA to continue the hold pattern." 
Mathew Tiller, LJ Hooker:​ "There has been no material change in indicators since last month. Property price growth continues to moderate which will be welcome by the RBA. Investor demand has eased with owner occupiers and first home buyers coming back into the market to fill the gap." 
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Stephen Koukoulas, Market Economics:​ "It remains the case that the RBA is downplaying the news of falling house prices, rising unemployment rate, weak wages and inflation. It should cut rates but it won't." 
John Caelli, ME: ​"The RBA will want to see inflation and wages improve and lower unemployment before making any changes." 
Michael Yardney, Metropole: ​"There's no reason to change rates. Jobs growth rebounded strongly last month but not enough to stop the jobless rate rising to a 9 month high of 5.6% keeping wages pressure low and rates won't rise until wages start growing." 
Mark Crosby, Monash University: ​"The RBA is likely to remain on hold for the next few months unless wages growth and inflation strengthen. Moderation in asset price growth also lessens the probability of a rate rise." 
Jacqueline Dearle, Mortgage Choice: ​"The RBA's decision to hold would be consistent with sustainable growth in the economy, home loan demand remaining stable, and achieving the inflation target over time." 
Dr Andrew Wilson, My Housing Market: ​"Most recent relevant economic data continues to support steady rates and the Banks conservative stance on monetary policy. Rising spectre of a tariff enhanced-trade war however may require action to lower the AUD which would mean lower official rates.” 
Alan Oster, NAB: ​"Watching for signs of better wages and labour market outcomes. Inflation still low." 
Matthew Peter, QIC:​ "The rosy global economic backdrop is coming under pressure. Slowing growth momentum, Italian political chaos, uncertainty over Korea, and emerging-market instability in the face of rising interest rates and USD are eroding confidence in the global economy. Domestically, we have the Banking Royal Commission casting a shadow over credit growth. In the face of rising uncertainties, RBA will have not have to think twice before remaining on hold." 
Noel Whittaker, QUT: ​"There is no compelling reason to increase them – and they certainly won't be reducing them." 
Nerida Conisbee, REA Group:​ "The economy still isn't growing fast enough for the RBA to start moving rates upwards to slow it down." 
Christine Williams, Smarter Property Investing: ​"Employment has stabilized. APRA's recommendations have been accepted and rolled out to all major funders." 
Janu Chan, St.George Bank:​ "Low inflation, ongoing spare capacity, downside risks to housing and the household sector suggests RBA will remain on hold for some time.” 
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Clement Tisdell, UQ-School of Economics:​ "The statements of the bank." 
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House prices to tumble in 2018, but two cities may buck the trend: Finder

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Recent small monthly falls in the Sydney and Melbourne markets support Moody Analytics' expectation for cooling, rather than a slump, in the near term.
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Its latest report forecasts Australia’s housing market is expected to cool further over 2018, given the coming stream of apartment supply coupled with continued restrictions on lending from the nation’s financial regulator, the Australian Prudential Regulation Authority.
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It noted several factors are at play, including aggressive regulatory action that has included limits on new bank lending exposure to the local housing market, higher borrowing costs especially for investors who tend to carry higher leverage, and improved enforcement of existing legal limits on foreign ownership have started to bear fruit.
It suggests if the housing market looks to be on a sharper than expected cooling trend that materially threatens the broader economy given the outsize exposure of consumers and lenders to local property, there was "little doubt regulators would step in to try to restore order, at the very least by winding back some regulatory limits."
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The latest Moody's Analytics CoreLogic Hedonic Home Value Index results show a divergent national market.
Declines in the biggest markets, Melbourne and Sydney, pushed down housing values in aggregate in April for a sixth consecutive month.
But markets in Adelaide, Darwin, Canberra and Hobart continue to improve, while markets in Brisbane and Perth were flat.
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After a 12.8% rise in 2017, house values across Sydney are forecast to decline nearly 5% in 2018 before a recovery in 2019. 
Apartment values in Sydney are likely to retain their value and gain 0.6% in 2018, thanks in part to healthy demand. 
Houses values in Melbourne are forecast to increase 1.5% in 2018, although some declines are forecast for Inner Melbourne. Melbourne’s apartment market is expected to hold up and gain 4.3% in 2018.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/21/CAP%20HOUSES.jpg" target="_blank">to enlarge.</a>
 
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House values across Brisbane are forecast to see a mild 1.4% gain in 2018, with strength in West Brisbane and Inner Brisbane offsetting declines in South Brisbane. 
Brisbane’s apartment values are tipped to rise 0.8% this year, driven by recovery in East Brisbane apartment values. Apartments in Inner Brisbane are still expected to see mild declines. 
House values in Perth will see another year of decline, with a 0.5% decline forecast for this year before a 2.2% recovery in 2019, driven by the steadily recovering local economy.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/21/CAP%20APARTMENTS.jpg" target="_blank">to enlarge.</a>
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Meanwhile, Adelaide’s housing market will continue its unremarkable run, albeit at a moderating pace.
House values in Adelaide are forecast to rise 1.2% in 2018, after a 4.9% gain in 2017. Canberra’s housing market will similarly see a slowdown, with values forecast to rise 4% in 2018 after an 8.7% gain in 2017.
Sydney's biggest drops are predicted to be in <a href="https://www.urban.com.au/expert-insights/buying/85602-ryde-and-inner-city-sydney-values-to-be-hardest-hit-moody-s-analytics" target="_blank">Ryde and the inner city and south areas.</a>
In Melbourne it's the <a href="https://www.urban.com.au/expert-insights/buying/85603-melbourne-s-inner-south-property-values-to-fall-the-most-moody-s-analytics" target="_blank">inner south values</a> that are going to take a hit, while Brisbane has <a href="https://www.urban.com.au/expert-insights/buying/85604-brisbane-s-property-values-have-seen-off-the-worse-with-price-falls-moody-s-analytics" target="_blank">seen off the worst</a> of its price falls.
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Property values are set to cool, not collapse in 2018: Moody's Analytics

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Ryde and Sydney's inner city suburbs are set to be the hardest hit in the housing downturn, according to Moody Analytics CoreLogic's Hedonic Home Value Index. 
After experiencing a 15.6 percent increase in house value in 2017, Ryde has a forecasted median house price drop of 9.2 percent.
The value drop is expected to carry on in to 2019, with declines of just over three percent predicted.
Sydney city and inner south suburbs, which have seen house value increases of over 70 percent since 2013, saw nearly the same percentage of house value increase as Ryde last year.
The house values are expected to drop 8.7 percent this year.
Unlike Ryde however, the house values in the city and inner south suburbs are expected to rebound in 2019, with a predicted jump back of 7.6 percent.
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CoreLogic's latest release suggests the Sydney housing market 'remains in a funk.'
The dwelling price drop in April was a ninth consecutive month of falls.
The prior upward cycle began around 2013, and from there to mid-2017 dwelling values across Greater Sydney increased 70%, according to the CoreLogic Hedonic Home Value Index. Since then, values have declined 4.2%. 
The strong dwelling price growth was borne out of the upbeat state of the economy, low unemployment figures, public infrastructure investment and the prevalence of interest-sensitive industries such as hospitality and construction.
Incomes in NSW have grown faster than the national average and underpin some of the recent gains in home values (see below). 
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/21/chart11.jpg" target="_blank">to enlarge.</a>
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However, housing values have grown even faster and thus are overvalued relative to equilibrium value.
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CoreLogic expect house prices across Greater Sydney to fall by 4.7% y/y in 2018, after a 12.8% gain in 2017.
They expect apartments to also slow but not as sharply, with a 0.6% y/y expansion expected in 4 2018, from the 9.8% growth in 2017.
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By 2019, the correction is expected to have largely passed, with house and apartment values forecast to increase by 0.9% and 2.2. 
Apartment values in Sydney have not experienced the same degree of growth as houses in recent years, and so are not expected to correct as sharply over 2018. 
Historically, apartment values are less volatile than houses. 
Supply constraints factor heavily in Sydney’s housing market and contributed to the strong runup in prices in prior years. 
A high level of supply has now come on line for apartments in the inner city and surrounding areas as well as dwellings in suburban areas via land releases and removing some development restrictions. This will contribute to the forecast price slowdown in 2018. 
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Outside Sydney, the story of the housing markets in rest of the New South Wales is a little different.
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As potential homebuyers’ incomes have not kept pace with the Sydney housing market, demand for areas outside Sydney has risen, as affordability is better.
This is especially so for areas such as the Central Coast, where house values are forecast to grow 4.3% in 2018, after a 13.4% increase in 2017.
Illawarra and Newcastle and Lake Macquarie areas have a similar story. Robust local economic conditions are driving house values in these areas
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However, regional areas farther away from Sydney where population growth is slower and supply constraints are reduced, such as New England and North West or Hunter Valley, have lagged. 
House values in New England and North West grew a tamer 1% in 2016 and in 2017 and are forecast to increase 5.5% in 2018 and 4.5% in 2019.
Melbourne's biggest drops are predicted to be in the <a href="https://www.urban.com.au/expert-insights/buying/85603-melbourne-s-inner-south-property-values-to-fall-the-most-moody-s-analytics" target="_blank">inner south</a>, while Brisbane has <a href="https://www.urban.com.au/expert-insights/buying/85604-brisbane-s-property-values-have-seen-off-the-worse-with-price-falls-moody-s-analytics" target="_blank">seen off the worst</a> of its price falls.
Nationally there's set to be a cool, <a href="https://www.urban.com.au/expert-insights/buying/85599-property-values-are-set-to-cool-not-collapse-in-2018-moody-s-analytics" target="_blank">but no crash.</a>
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Ryde and Inner city Sydney values to be hardest hit: Moody's Analytics 

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House values in Melbourne's inner south are set for the biggest price drop over the next two years, according to Moody's Analytics CoreLogic's Hedonic House Value Index.
The latest figures suggest the area will see a 2.5 percent house price value drop, followed by a 5.5 percent decrease in 2019.
House values in the inner south area fell in April for the first time since the end of 2012.
Housing supply has ramped up significantly in recent years and remains elevated by historical standards, with a strong pipeline of completions ahead.
This correction in the housing demand/supply balance is likely to see home values in Melbourne’s inner suburbs continue to decline, CoreLogic suggest. 
The weakness is expected to be most acute in the inner south, where home values are projected to fall until mid-2020.
Similarly, apartment prices in the Inner South are projected to start falling from mid-2018, before firming by mid-2019.
For Melbourne-Inner and the Inner East, home values are expected to fall until the first half of 2019, after which a modest recovery is likely to take hold.
Apartment prices there are expected to hold up relatively well, with the price gains likely to continue.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/21/vic-home-value.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/6/21/vic-home-value.jpg" alt="">
 
Melbourne's house price growth has slid for 11 consecutive months and fell in April to a 62-month low of 3.1 percent y/y.
The slowdown is most pronounced in Melbourne’s inner suburbs. House values in Melbourne's inner east edged up just 0.3% y/y, a 11⁄2-year low.
Apartment price growth is also cooling. Apartment values in Greater Melbourne were up 5.7% y/y in April, a 15-month low, with the Inner South leading the slowdown.
The downswing has not been confined just to Melbourne’s inner suburbs, with house values across Victoria generally rising at a slower pace.
In Melbourne’s outer suburbs, where house prices recorded stellar double-digit growth through 2017, growth has also decelerated markedly.
Annual house price growth is down at a 38-month low in the North East; a 35-month low in the North West; a 19-month low in the Outer East; a 16-month low in the South East; a 34-month low in the West, and a 20-month low in the Mornington Peninsula.
Geelong is bucking the trend in the rest of Victoria. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/21/rest-of-vic.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/6/21/rest-of-vic.jpg" alt="">
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It saw a 10.6 percent house price value increase in 2017, and is set to see those prices soar another 12.3 percent this year and then a further 11.2 percent in 2019.
Ballarat is set to see consistent house price growth, as is the north west region.
Sydney's biggest drops are predicted to be in <a href="https://www.urban.com.au/expert-insights/buying/85602-ryde-and-inner-city-sydney-values-to-be-hardest-hit-moody-s-analytics" target="_blank">Ryde and the inner city and south areas</a> while Brisbane has <a href="https://www.urban.com.au/expert-insights/buying/85604-brisbane-s-property-values-have-seen-off-the-worse-with-price-falls-moody-s-analytics" target="_blank">seen off the worst</a> of its price falls.
Nationally there's set to be a cool, <a href="https://www.urban.com.au/expert-insights/buying/85599-property-values-are-set-to-cool-not-collapse-in-2018-moody-s-analytics" target="_blank">but no crash.</a>
 
 
 
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