Capital city dwelling values ease in October

The RP Data-Rismark Home Value Index results for October recorded a -1.0 per cent decline. The fall was broad-based, with declines being experienced across each of the capital cities, except Perth and Darwin.

The fall in October follows dwelling value increases of 1.4 per cent in September, no change in August, a 0.6 per cent gain in July and a 1.0 per cent rise in June.


Both Sydney and Brisbane markets recorded a -0.9 per cent fall in values over the month, while Melbourne values experienced a larger -1.1 per cent drop. Of the mainland capitals, the largest monthly decline was recorded in Adelaide where dwelling values dipped -2.4 per cent in October.


On a quarterly basis, most capital cities recorded a rise in dwelling values, with the largest capital gains being found in Darwin (+1.5 per cent), Adelaide (+1.3 per cent) and Perth and Sydney (both +0.7 per cent). The only cities where values were down over the three months ending October were Canberra (-0.8 per cent) and Hobart (-5.7 per cent).


On an annual basis, only Sydney (+0.6 per cent), Perth (+3.5 per cent) and Darwin (+8.6 per cent) have shown a rise. The largest fall over the past twelve months to the end of October was recorded in Hobart, where dwelling values are down -4.6 per cent.


According to RP Data’s research director Tim Lawless, the weak October result highlights how delicately balanced the Australian housing market is:


"Whether the October decline is a blip on the path to a recovering market, or a sign of further weakness is yet to be seen. Other indicators are suggesting the market has gathered some strength, with auction clearance rates holding firm around the 60% mark across the two major auction markets and owner occupier housing finance numbers showing steady improvements since February 2012, albeit from a very low base."


"Until we see optimists outnumber pessimists in consumer confidence surveys, a recovery in the housing market is likely to remain precarious," Mr Lawless said.


While unit markets showed a more resilient performance across the combined eight cities aggregate index, with values down -0.6 per cent in October, compared with a -1.0 per cent decline across the detached housing market, the cities of Melbourne and Adelaide both recorded a larger -3.2 per cent fall in unit values over the month. In particular, Melbourne unit values have shown a greater decline in values than any other mainland capital city over the past twelve months, recording a 6.0 per cent drop.


Rismark International's CEO, Ben Skilbeck, commented, "We are starting to see a reversal of the relatively poor performance of the top 20 per cent of the market as compared to mid-market segment. Over the last quarter the top 20 per cent of suburbs by price have outperformed both the mid-market and the bottom 20 per cent."

For more information about the residential property market in your areas of interest, please feel free to stop by your local CENTURY 21 Real Estate office for expert and clear advice. Additionally, if you would like to speak to a mortgage professional about the impact of this rate hold on your mortgage, or to find out more about suitable loan packages for your circumstances, please contact CENTURY 21 Home Loans.

Posted by Charles Tarbey on 09/11/2012 at 12:00 AM | Categories:


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