Melbourne now holds the nation’s worst performing housing market, overtaking Sydney.

Property prices in Victoria’s capital fell over the past quarter by 1.8 per cent, whereas Sydney only experienced a 1.1 per cent decline.

The situation isn’t much better for the nation as a whole, with national house prices falling at the fastest rate in six years.

“A lot of people, 12 months ago, were concerned with a property bubble in Australia,” Ross Greenwood says.

“It now, clearly, has been popped.”

Head of Research at CoreLogic Tim Lawless tells Ross we’re still seeing an orderly fall as opposed to an all-out collapse.

“I think, at the moment, any of the regulators would be very happy, very satisfied with how the property market’s tracking.

“We’re not seeing prices plummeting. In Sydney, over the past 12 months… values are only down 5.4 per cent.

“I think in that context we’re not seeing prices falling very rapidly at all.”

Tim also points out the median house price in Sydney has only recently nudged below $1 million.

“Affordability is still a major barrier in Sydney and, to a lesser extent, in Melbourne.”

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