Similar discrepancies can be seen in New South Wales with Sydney prices down 4.5 per cent year-on-year compared with the rest of the state actually being 3.3 per cent higher year-on-year.
This could be attributed to a recent focus on credit tightening which is having a greater impact on the more highly leveraged Sydney and Melbourne markets compared with the more affordable regional areas.
Western Australia is slowly looking better. Prices in the state (excluding Perth) have increased for the past four months which is the best run since the mining boom was in full swing in 2010.
Business investment data suggest the end of the decline in mining investment is nearly here and the prospect of greater stability in the population and employment should provide some support to prices.
But it’s not time to get too excited yet as house prices are still around 30 per cent lower than the peak a decade ago.