House price slide continues, but analysts say the end is nigh
Home price falls are continuing to slow in Australia's two biggest cities, as an increase in auction clearance rates prompts some analysts to predict that the property market will bottom this year.
CoreLogic's latest monthly home value index shows prices fell an average of 0.4 per cent in May, with regional areas declining a smaller 0.2 per cent.
Darwin and Perth led the declines, with prices off 1.6 per cent and 1 per cent respectively last month.
Sydney and Melbourne have bigger declines over the past year, but both cities had smaller declines in May of 0.5 and 0.3 per cent respectively.
That fits with recent improvements in auction clearance rates in the two cities, where well over 60 per cent of properties that went under the hammer last weekend sold.
These preliminary figures are likely to drop to clearance rates in the low-60s to high-50s when the final figures come in later this week, but this is around the highest levels in more than a year.
CoreLogic's Cameron Kusher said the price falls in Sydney and Melbourne over May matched the improvement in auction clearance rates.
"We have been seeing the rate of decline on a monthly basis slow," he told Reporter.