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Home values in major cities fell 0.8% last month, accelerating from a 0.5% decline in May, according to CoreLogic Inc. data released Wednesday. The slide was led by Melbourne and Perth, where prices dropped 1.1%. In Sydney, prices fell 0.8%.
While the decline in property prices from the coronavirus outbreak has been milder than initially anticipated, “the downside risks remain significant,” said Tim Lawless, head of research at CoreLogic.
The real test for the housing market will come later this year when current extraordinary levels of government and bank assistance wind down. More than 485,000 mortgage borrowers are on payment holidays, amounting to about 11% of property loans at the major banks, according to Morgan Stanley analysts. About 3.5 million workers are on government wage subsidies.
41,745 in U.S.Most new cases today
-8% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.073 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-2.3% Global GDP Tracker (annualized), May