Housing prices across Australia fell by a little less than one per cent in May, with the usual seasonal variation the likely reason.
CoreLogic RP Data will publish its estimate of home values on Monday,
In the meantime the property market analytics firm says its weekly collection of capital city home prices points to a nationwide fall of 0.9 per cent in the month once the final figures are in.
But CoreLogic RP Data head of research Tim Lawless warned against assuming this is the beginning of a weakening trend.
"Whether the change in the index's direction indicates the start of a softening trend across the housing market or is more reflective of seasonal volatility is yet to be seen, however it is clear that in trend terms the housing market remains strong, driven primarily by substantial capital gains across the Sydney market," he said.
May is a month often beset by seasonal weakness but the likely dip this year is smaller than in the past few years.
Prices fell by 1.4 per cent in May 2012, 1.2 per cent in May 2013 and 1.9 per cent in May 2014.
And the market has a strong undercurrent of demand.
"Auction clearance rates have remained high over the month in Sydney and Melbourne and it is likely that the lower interest rate environment will keep momentum in the market," Mr Kusher said.
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