Sydney and Melbourne house prices fall again

CoreLogic has released its monthly property price update today. According to the CoreLogic hedonic home value index national dwelling values were steady in March.

However, there was significant differences between cities and regions. The combined capitals figure saw a 0.2% decrease in the value and the combined regional areas saw a 0.4% increase.

The headline figure for Sydney is that dwelling prices fell by 0.3% in March, declined 1.7% over the past quarter and it’s down 2.1% over the past year.

Melbourne saw a decline of 0.2% in March and prices fell by 0.5% over the past three months. Adelaide was the other capital city to show a decline, prices went down by 0.3% in March.

Things are looking a lot better in other cities. Hobart prices went up by 1.7% for March, Darwin went up by 1%, Canberra went up by 0.2% and Brisbane went up 0.1%. Hobart has posted an impressive 13% annual increase over the past year.

CoreLogic’s head of research, Tim Lawless, said “The stronger combined regional markets performance continues a trend that began to emerge in October last year where regional housing markets showed an overall improvement in the pace of capital gains while the combined capitals trend softened.

“The broad-based falls highlight that the softening trend in the Australian housing market is largely due to weaker conditions in Sydney, however, most other capitals are also recording subtle falls.”

Foolish takeaway

The up and down of share prices are much more extreme compared to property, so these house price changes aren’t big movements and it certainly doesn’t represent a huge crash. However, heavily indebted investors are relying on price rises so further price decreases are not good for homeowner equity of their property.

Officials at Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) will be keeping a close eye on things if prices keep going down.

I’d much rather invest in top shares like these compared to property with the way prices are gently declining at the moment.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.