Melbourne home values and market activity are being adversely affected by stage four lockdown conditions.
Home values were down 1.2% in August following a similar result in July, taking the cumulative decline to 4.6% through the COVID period so far.
Similarly, our estimate of home sales has fallen 20% compared with June, demonstrating the impact of lower household confidence and social distancing policies that prevent inspections and on-site auctions.
The upper quartile of Melbourne’s housing market is wearing the brunt of the downturn with values down 7% since March.
Meanwhile, the lower quartile of the market has recorded a smaller 1.&% drop.
Despite the weakest conditions, Melbourne housing values remain 5.9% higher than they were a year ago, demonstrating the strong capital gains that were present prior to COVID-19.