House prices in Sydney and Melbourne rebounded more than 2% last month but fell or were flat over the quarter as the eastern capitals’ five-year boom slowly runs out of steam, according to CoreLogic.

In other capitals, the performance of house prices was patchy, with the exception of the long-depressed Perth market, where values rose 1.3% in June. The quarterly rise of 0.8% in this city was seen as a sign of “subtle improvement”.

The pace of Sydney’s annual price growth has slowed, from more than 17% earlier this year to 12% in June. In Melbourne, values rose 15% earlier this year, though yearly growth has slowed to 13.5%.

By December, the annual growth rate is expected to ease to 5%-10% for the eastern capitals, according to Cameron Kusher, CoreLogic’s head of research.

Stamp duty concessions in New South Wales and Victoria for first-home buyers, which took effect on July 1, may boost the market at the lower end. Victoria is more likely to benefit than NSW, as less affordable homes are available in the latter.

CoreLogic’s data paints a picture of a resilient but easing housing market where auction clearance rates are lower, more homes are being listed for sale, and investors are less keen in the face of regulatory clampdowns and the banks’ out-of-cycle mortgage rate hikes.
 

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