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Home prices surge modestly in Sydney, Melbourne

SYDNEY (Australia):  The falling home prices in Australia’s biggest cities have rebounded and registered a modest rise amid lower interest rate and improved property sentiment following the national elections.

The positive sentiments have led home prices in Sydney and Melbourne register a modest gain despite national fall continue.

CoreLogic’s June home value index recorded a national fall of 0.2 per cent, with the capitals down 0.1 per cent and regional markets off 0.4 per cent.

Sydney prices surged 0.1 per cent last month and Melbourne rose 0.2 per cent, although both markets were down over the quarter and off 9.9 per cent and 9.2 per cent, respectively over the past year.

However, the monthly gains were the first in almost two years in Sydney (since its market peak in July 2017) and 19 months in Melbourne (since its peak in November 2017).

CoreLogic’s head of research Tim Lawless said the return to modest price gains for Sydney and Melbourne was not surprising given recent improvements in their auction results.

“We have been seeing auction clearance rates consistently improving throughout 2019, and those results have run parallel with Sydney and Melbourne’s markets as well, where the rate of decline has been getting progressively smaller,” he told ABC News.

AMP Capital chief economist Shane Oliver, who was one of the first mainstream analysts to predict double-digit home price falls for Sydney and Melbourne, said the tick-up in home prices was another sign that the downturn may be at its end.

“I think it likely is a sign that Sydney and Melbourne are at, or near, the bottom of their downturns,” he said.