Home prices across Australia fell for the fourth consecutive month during August, especially due to the lockdown imposed in the state of Victoria which dragged down prices in the key Melbourne market. According to a report by property consultant CoreLogic, home prices all over Australia fell by 0.4% MoM in August after the 0.6% decline seen in the previous month.

However, when compared to the same period a year ago, home prices are 5.8% higher, as a result of the strong performance in the housing market prior to the coronavirus pandemic which hit in March. Home prices across Melbourne fell by 1.2% on account of the lockdown which was reimposed in the region due to a resurgence in infections.

Head of research at CoreLogic, Tim Lawless, notes, “It’s not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions.”

The housing market in Melbourne also saw auction volumes contract severely in August, touching the lowest levels seen since April. Before the pandemic struck, Australia’s housing stock was valued at AUD 7.2 trillion but is expected to have lost significant value as recession hit Australia for the first time in 30 years.