Home values edged higher by 0.1 per cent in November, according to the latest RP Data-Rismark Hedonic Home Value Index, with combined capital city home values rising by 8.3 per cent so far this year.
RP Data's Senior Research Analyst Cameron Kusher noted that the slowing rate of capital city home value growth indicates a potential moderation in overall growth.
Sydney and Melbourne recorded relatively strong levels of annual value growth and are up 12.5 per cent and 6.6 per cent respectively over the last 12 months. However, over the past couple of months, the monthly rate of growth in both cities has begun to slow.
Mr Kusher commented that while further growth is likely for this cycle, it may be the case that the peak rate of value growth in both cities has now passed.
Over the three months to November 2013, home values increased across each capital city except for Hobart (-4.7 per cent) and Canberra (-3.5 per cent). Mr Kusher said that rising home values are becoming more broad-based rather than just being focused across a handful of capital city markets. Values increased by 5.8 per cent in Sydney, 1.5 per cent in Melbourne, 1.1 per cent in Brisbane, 2.6 per cent in Adelaide, 2.5 per cent in Perth and 1.8 per cent in Darwin.
According to RP Data, although home values are generally trending higher across the capital cities, Sydney and Perth are still the only individual capital city markets in which home values are now higher than they were at their previous peak.
"The latest data from the Reserve Bank shows private sector housing credit increased by 5.0 per cent over the 12 months to October 2013, its highest annual rate of growth since June 2012. The data also indicates that housing credit for investment housing (6.4% pa) is expanding at a much faster pace than owner occupier finance (4.3% pa)," Mr Kusher said.
A typical capital city home is currently taking 41 days to sell compared to 50 days a year ago and homes are being discounted by 5.8 per cent currently compared to 6.6 per cent a year ago.