Ausi House prices in decline, at greater than 2008 levels.

MELBOURNE property values have continued their six-month downward slide, recording the fourth-largest drop across the country. The median Melbourne house price lost 0.6 per cent in May, contributing to an annual decline of 2.9 per cent, according the latest RP Data-Rismark figures. Across the country, capital-city home values fell by 0.3 per cent in the month.
The latest slide means the nation's homes have lost more value in the first five months of this year than in a similar period during the 2008 global financial crisis.
Sydney was the only capital to notch a gain - 1 per cent - in the past 12 months. But Perth home values have slumped by 7.5 per cent, Brisbane's by 5.9 per cent and Darwin's by 3.2 per cent. The median price of houses and units in Melbourne has fallen by $21,000 from its peak in November 2010, to about $500,000.
The sluggish property market was also reflected in a drop in the number of dwellings sold, he said. Transaction levels were 28 per cent below the five-year average. This has prompted Melbourne vendors to drop prices to achieve a sale. Discounting has increased to 6.5 per cent, up from 5.7 per cent this time last year.

While investors nationally have seen strong growth in rental yields, in Melbourne they declined to 3.8 per cent from a previous high in early 2009 of 4.5 per cent.