Home price falls wipe billions from residential property market

Australia’s collapsing real estate prices have delivered a massive hit to the economy, wiping billions from the residential real estate market in the span of three months. Alarming ABS figures released today showed the value of the residential housing market shrank by $34.1 billion over the June quarter, dragging the total value of the market down to $12.68 trillion It was the first time in four years that the total value of the market contracted, according to ABS head of finance statistics Dr Mish Tan. “This is consistent with recent softening in housing market conditions,” Dr Tan said, noting home prices dropped by an average of 0.7 per cent nationally over the period. MORE: ‘Vanishing’: new figure is horror news for tenants Auction clearance rates have tanked in recent weeks as home prices fall. Picture: Jane Dempster Prices fell the fastest in NSW, with an average drop of 2.4 per cent, which skimmed about $32,700 off the state median dwelling price. Notable drops were also recorded in Victoria at 2.1 per cent and the ACT, where values declined by an average of 1.3 per cent. Analysis by Primara Research, modelled off ANZ property predictions, showed the housing market could cost...