Capital city home values decrease in 2012

The latest RP Data-Rismark Hedonic Daily Home Value Index shows that home values fell by 0.3 per cent across the nation’s eight capital cities in December, to end 0.4 per cent down over the 2012 calendar year.

Despite dwelling values falling for a second consecutive year, RP Data noted that the annual rate of declines has improved substantially compared to 2011. 

“Capital city home values remain -5.7 per cent lower than their historic highs of November 2010, however, dwelling values are up 1.8 per cent from their low of late May 2012,” said RP Data senior research analyst Cameron Kusher.

“It is important to note that despite the fact that standard variable mortgage rates have fallen by an average of 85 basis points over the past year and by 135 basis points since October of last year, the housing market has still been unable to record growth in values over the year.

 “Home values remain below their historic highs across each capital city and have increased at an average annual rate of just 1.9 per cent over the past five years; it is clear that the previous strong value growth conditions to which many home owners became accustomed of recent years are well and truly behind us.

“Home values in Brisbane, Perth and Hobart remain below where they were five years ago, whereas the other mainland cities have all recorded significantly lower rates of growth in home values over the past five years than they did over the preceding five year period.” Mr Kusher said.

The report shows that Sydney (+1.5 per cent), Perth (+0.8 per cent) and Darwin (+8.9 per cent) each posted an annual rise in values.

The largest fall over 2012 was recorded in Melbourne, where dwelling values declined by 2.9 per cent.

Looking forward to 2013, RP Data predicted that macroeconomic factors, both domestically and internationally, would weigh heavily on the performance of the housing market over the next year.

The report notes that Australian households are saving around 10 per cent of their disposable income and are showing a preference for saving and paying down debt rather than spending – factors that RP Data’s analysts said would make price rises unlikely, regardless of whether interest rates are cut further in 2013.

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 10/01/2013 at 12:00 AM | Categories:


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