Back-to back interest rate cuts have helped to restimulate Australia's residential property market, with the RP-Data-Rismark Home Value Index recording an average one per cent increase in home values over the month of June – the biggest monthly jump the Index has seen in over two years.
The Index showed that six out of the nation's eight capital cities experienced increases in housing values over the month, with the exceptions of Adelaide and Darwin, which saw falls of 1.1 per cent and 0.7 per cent, respectively.
Hobart was the best performer, posting a 2.7 per cent jump, followed by Canberra (+2%), Perth (+2%), Sydney (+1%), Melbourne (+1%), Brisbane and the Gold Coast (+1%).
According to RP Data's Research Director, Tim Lawless, the healthy capital gain in June was not a surprising result, as the Index had shown consistent increases over the course of the month, foreshadowing a positive outcome.
Mr Lawless attributed the monthly upturn to consecutive RBA interest rate cuts in May and June, which had worked to spur demand in the property market.
Commenting on the RBA's July rate hold, Chairman of Century 21 Australasia, Charles Tarbey, said:
"In a decision that should provide some stability for property owners, the Reserve Bank has put the official cash rate on hold - a move that we expect will bring some certainty to the domestic market."
For information about the residential property market in your area, please contact your local Century 21 agent.