Homes and units in Shepparton have seen the biggest increase in value in Victoria in the past 12 months, but homes have started to fall in line with prices in the rest of the state.
Homes in Shepparton have fallen 2.2% in the past three months and 1% in August, according to property analyst CoreLogic.
However, in the past 12 months, the Shepparton area has seen the strongest growth in the entire state, with prices up 18% in the 12 months to August 31, from 16.6 % in Hume and 15.2% in Warrnambool.
The median home value in the Shepparton area is now $491,081 according to the latest data released Thursday September 1, well below other regional towns such as Bendigo ($635,578), Ballarat ($627,278 ) and Geelong ($821,502).
House prices in central Melbourne have all fallen between 1% and 2.6% over the past month and 4-6% over the past three, while units across the city have also fallen.
Units bucked the downward price trend in Shepparton, one of four areas to see an increase in the state.
The median unit price in Shepparton rose 1.4% in August and 6.7% over the past three months.
The median price is now $287,591, 18.4% higher than 12 months ago, the data shows.
Price declines were measured using CoreLogic’s Hedonic Home Value Index, which uses home sales data to judge the overall market.
Five of the eight capitals recorded month-on-month declines in July, led by Sydney and Melbourne where values fell 2.2% and 1.5% respectively.
CoreLogic research director Tim Lawless said housing market conditions are likely to deteriorate as interest rates rise through the rest of the year.
“The rate of growth in home values was slowing long before interest rates started to rise; however, it is quite clear that the markets have weakened quite sharply since the first rate hike on May 5,” he said.
“Although the housing market has only been down for three months, the National Home Value Index shows the rate of decline is comparable to the onset of the global financial crisis in 2008 and the sharp drop in the early 2000s. 1980s.”
He said regional markets were still outperforming their counterparts in the capital, but this month’s figures showed major regional centers were not immune to falling house values.
“The stronger growth reflects a significant demographic shift toward regional commutable markets, which should have some permanence as more workers take advantage of formalized hybrid employment contracts,” Lawless said.