Capital city dwelling values flatline over November.

According to RP Data-Rismark’s Hedonic Home Value index, dwelling values across all of Australia’s capital city housing markets, except Melbourne, rose over November with values now just -0.1 per cent lower over the past 12 months.

Australia’s capital cities saw dwelling value growth of 0.4 per cent during the first fortnight of November; but a lapse in growth over the last two weeks of the month resulted in capital gains being relinquished.

The strongest performer over November was Perth where improving housing market conditions were evident, with values up one per cent. Brisbane and Adelaide values each increased by 0.5 per cent while Sydney values rose by just 0.1 per cent.

On a quarterly basis, the majority of capital cities recorded dwelling value growth, with Darwin (+3.1 per cent), Perth (+3.0 per cent), Brisbane (+0.8 per cent) and Sydney (+0.6 per cent) recording the largest increases. The only capital cities where values declined over the three months ending November were Canberra (-0.7 per cent), Melbourne (-0.7 per cent) and Hobart (-4.5 per cent).

According to RP Data Senior Research Analyst, Cameron Kusher, the November market conditions highlight that the road to a market recovery will not be without pauses and those cities which performed very strongly in 2009 and 2010, like Melbourne, may show continued weakness.

“Capital city home values remain -5.6 per cent lower than their historic highs of 15 November 2010, but, up two per cent from their low of late May 2012.

“Home values in Brisbane and Perth remain below where they were five years ago whereas the other mainland capital cities have all increased over this period. This has meant that relative to the other capital cities, Brisbane and Perth have experienced affordability improvements and subsequently we may see them become more popular from both an owner occupier and investment perspective.”

Rismark International CEO, Ben Skillbeck, commented: “With the recent sharp improvement in consumer sentiment showing that optimists now outweigh pessimists, house price to income ratios back at 2003 levels and meaningful recent housing affordability gains, it will be interesting to see the impact on the housing market  if interest rates are further cut in December as widely anticipated. Given the historically weak seasonal month of December, if rates are cut in December, it’s likely we’ll have to wait until early in the new year to see the housing market response.”

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 clear and expert advice. 

Posted by Charles Tarbey on 07/12/2012 at 12:00 AM | Categories:

1 Comments

jaym

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