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HOUSE prices have fallen nationally for the first time in almost four years as the decline of the housing market bubble gains pace.
Average prices in capital cities fell 1.2 per cent in the three months to June, with the worst performances in Sydney, down 5.4 per cent, and Canberra, which fell 3.3 per cent.
The drop in Sydney values, long the leader in house price rises, takes the annual growth rate there to a modest 5.3 per cent for the year.
BIS Shrapnel director of building and construction Robert Mellor said official figures indicated housing markets were about 5 per cent off their peak.
Mr Mellor said while the bubble had burst in both Sydney and Melbourne, even the booming Brisbane market was heading for a slowdown. He predicted a full-year rise of just 8 per cent and a similar result for Perth where, according to the ABS, house prices have risen 14.6 per cent in the past year.
While the house price figures confirm Brisbane as the rising star, with a 12-month increase of 28.5 per cent, the glory days of Sydney and Melbourne are a fading memory.
After hitting 17 per cent in December 2001, annualised Sydney house price rises have been tracking around 16 per for most of the past year. A 3.5 per cent quarterly rise resulted in a March full-year figure of 15.8 per cent, but that has fallen to just 5.3 per cent.
Despite Brisbane's 28.5 per cent rise for the year, it had only a modest 1.5 per cent increase during the June quarter, only slightly bettering Melbourne's 1 per cent. Melbourne's annual house price rise of 5.5 per cent is a far cry from late 2001, when it was around 30 per cent.
Despite June-quarter house price rises in all cities except Sydney and Canberra. the ABS index average for all eight capitals fell 1.2 per cent for the quarter, but is still up 10.9 per cent on an annualised basis.