The nationwide downturn in the property market has hit the Hunter.
Newcastle house prices fell 2.2 percent in the September quarter.
It comes after house values jumped by about 50 percent in five years.
The median price for a house in Newcastle is $587,000.
While most experts say tougher lending criteria is to blame, the Hunter branch of the Housing Industry Association says the fall in Newcastle can be attributed to a 25 percent increase in building approvals, especially for apartments, which reduces the overall cost of housing.
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| Newcastle House Prices Fall Image: smartinvestor.com.au |
