More worrying than the 0.5% q/q seasonally adjusted fall in the ABS measure of Australian house prices in the fourth quarter of last year (+0.2% q/q unadjusted) is that the subsequent rebound is already running out of steam. After rising by an impressive 1.1% m/m in February, the daily data from CoreLogic suggest that seasonally adjusted house prices are on course to fall by around 0.1% m/m in March. That would be consistent with the annual growth rate easing to 7.0%. The recent softening in home sales and fall in sentiment towards housing as an investment suggests that house price inflation will slow further yet.
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