Aussie house prices nosedive 2 per cent during COVID-19 pandemic

Australia's house prices have nose dived by 2 per cent during the COVID-19 pandemic, reversing more than two years of gains.

Domain's House Price Report for the June 2020 quarter shows that nationally house prices dropped 2.0 per cent and unit prices dropped 2.2 per cent in the three months to June.

Melbourne's houses suffered the steepest drop, falling 3.5 per cent to a median of $881,369, while it was units in Brisbane that fell most overall, dropping 4.1 per cent to record a median of $375,285.

READ MORE: Melbourne's property values plunge during COVID-19 pandemic

Darwin's unit prices also suffered a heady fate, falling 3.7 per cent in just three months to record a median of $241,461.

Domain's Senior Research Analyst Dr Nicola Powell said while many cities had values fall the plunge has been "minimal".

"Nationally house prices have dropped by 2 per cent and unit prices by 2.2 per cent over the June quarter," Dr Powell said.

"This is the first quarter to show the impact of COVID-19, reversing upward price swings in Sydney and Melbourne.

READ MORE: Record number of Aussies refinancing as new home lending plummets

"While most capital cities declined, the falls have been minimal to-date as unprecedented government stimulus, mortgage holidays, low stock levels and record low interest rates shield values from any significant declines, helping to retain stability in the housing market."

Not all cities suffered losses.

House prices in Adelaide stayed steady, gaining 0.2 per cent on the median of $553,036 and houses in Hobart also jumped 1.4 per cent to $529,388.

The biggest winners were house owners in Canberra, where prices as a whole lifted 4.1 per cent in the June quarter to a median of $819,090.

Speaking specifically to Melbourne, Dr Powell said it was unlikely that a second lockdown would bode well for prices.

READ MORE: More than half of property sellers withdraw homes from market in first six weeks of COVID-19

"Melbourne's property market outlook has adjusted in recent weeks as the city enters its second lockdown. The full impact of the first economic shutdown was clearly evident in the June quarter," said Dr Powell.

"Sales activity, listings and clearance rates fell in April. However the rebound was swift as restrictions eased, confidence lifted from the April lows, vendors returned, and more buyers decided it was a good time to purchase - nationally rising to a six-month high.

"The second lockdown will stall this momentum temporarily."

Australia's median house prices June 2020*

*Domain House Price Report, June 2020 Quarter. Does not include unit prices.

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