First quarter of the year sees home values stabilise

The recent release of the RP Data-Rismark Hedonic Daily Home Value Index results for March showed that national home values rose 0.2 per cent in March 2012 – a potential sign that the Australian housing market is stabilising.  The market has remained unchanged for the quarter ending 31 March 2012; this flat result is the strongest result since March 2011 when values increased by 0.7 per cent.  

According to the managing director of Rismark International, Ben Skilbeck: “While the housing market remains soft, the zero per cent change over the first quarter of 2012 demonstrates that it is consolidating its position following the decline seen in the calendar year 2011.”

Over the month, the resource rich states delivered the strongest gains with Perth rising 1.4 per cent, Darwin up 1.1 per cent and Brisbane increasing by 0.8 per cent.  

The Index saw that the flat result seen over the March quarter was largely driven by the Sydney housing market which achieved the strongest gains over the quarter, with values rising 1.1 per cent.  Values were down across many of the other capital cities with the most significant drop recorded in Adelaide where dwelling values were down 1.5 per cent.  

Rismark’s Ben Skilbeck points out a number of factors that indicate an improvement in housing market conditions may have occurred over the past few months.  

“The ratio of national house prices to household disposable incomes is currently below the decade average.  Additionally, according to the ABS housing finance data, both the value and number of loan approvals for the purchase of established dwellings are at levels not seen since November 2009.  First home buyers as a proportion of home loans approved are back to levels not seen for two years,” said Mr Skilbeck.  

Charles Tarbey, Owner and Chairman of CENTURY 21 Australia said of the results: “While we must note that much of the improvement seen in the housing market is due in part to the Sydney market which rose 1.1 per cent over the quarter, we are nonetheless seeing signs of a potential stabilisation of home values. 

“Other factors such as strengthening auction clearance rates and improving demand from first home buyers are certainly encouraging indicators of both the current state of the national housing market and the potential for continued improvements over the course of 2012,” concluded Mr Tarbey.  

For more information about available property purchase opportunities in your area, please contact your local CENTURY 21 agent. 

Posted by Charles Tarbey on 10/04/2012 at 10:17 AM | Categories: Finance - Property Management - Investors - First Home Buyers - State of the Market -

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