Australian house prices

PHOTO: The house price curve took a sharp dive from 2017, but was recovering before coronavirus hit. (ABC News)

Experts say a decline in Australian house prices since the beginning of the COVID-19 pandemic is not yet anywhere near as steep as other historic market crashes, but this time there’s little ammunition left to blast the economy — and the real estate industry — out of a trough.

The most recent figures show residential property values in Australia declined for the second consecutive month as the impact of the coronavirus pandemic took its toll on the market.

In CoreLogic’s latest home value index national values fell 0.7 per cent in June, following on from a 0.4 per cent decline in May.


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However, with the Federal Government currently pouring hundreds of billions of dollars into the economy, home owners will not know for months whether the current decline can be halted, or if it will continue its downwards trajectory once those stimulus measures dry up.

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CoreLogic head of research Tim Lawless said the recent market downturn since 2017 was already much larger than previous fluctuations, even before the virus took hold.

The national property market had been in a recovery phase after plunging 10.2 per cent from a peak in 2017, until coronavirus hit.

Profile shot of CoreLogic's head of research Tim Lawless sitting in an office wearing a suit.
CoreLogic’s head of research Tim Lawless says it’s unclear how protracted this downturn will be.(Supplied: CoreLogic)