RP Data-Rismark Hedonic Home Value Index results for November, which saw, according to the two companies, th" />

House prices rise in November

The end of December marked the release of the RP Data-Rismark Hedonic Home Value Index results for November, which saw, according to the two companies, the first rise in home values since December 2010. 

 The Index showed that Australia’s capital city home values rose by 0.1 per cent in November (seasonally adjusted), while regional house values recorded a 0.3 per cent (seasonally adjusted) rise over the month – also the largest increase since December 2010. 

 These results for November seem to suggest that the residential property market is responding to the interest rate cut made by the Reserve Bank in November, the first of two consecutive cuts made in 2011, which is pleasing.   

 While the year to November 2011 saw an overall decline in housing values, according to RPData-Rismark, the performance in November helped to improve the year-to-date result.  While in October it was reported by RP Data-Rismark that capital city dwelling values had declined by four per cent in the first 10 months of 2011, November’s results brought the change to just -3.7 per cent (seasonally adjusted). 

 Regional markets showed a seasonally adjusted decrease of -2.8 per cent over the year to November 2011.   

 For those Australians preparing to sell a property in 2012, while slight, this increase to the Index (and the potential for further improvement in values) is welcome news.  It will certainly be interesting to watch for the possibility of further improvements in this trend.   

 On the flipside, for those Australians looking to purchase in 2012, these results could indicate that now may be a good time to consider a property acquisition, particularly if the Reserve Bank elects to further cut interest rates in February as some pundits are predicting.  

 All in all, 2012 looks like it is set to be an interesting year for the property market.  If you would like an expert opinion regarding your property plans for the year ahead, please don’t hesitate to visit any one of the hundreds of CENTURY 21 offices around Australia.

Posted by Charles Tarbey on 12/01/2012 at 11:58 AM | Categories:

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