Dear Customers, Please find below a summary of the most recent information on house prices and market movement across Australia. As always, if you have any questions regarding this information or your need advice on commencing your next residential project, please do not hesitate to contact me. Kind Regards, Andrew Slattery Anabode Design 0403 438 374 HOUSE PRICES REBOUND STRONGLY IN JUNE • RP Data-Rismark data show national capital city home prices rebounded strongly in June (after easing back modestly in recent months). Home prices rose by a sharp 1.9% in the month to be up 3.8% over the year. • In June, Sydney home prices rose by 2.7% m/m, Melbourne 2.3% m/m, Brisbane 0.1% m/m, Adelaide 0.7% m/m, Perth 1.7% m/m, Canberra 0.3% m/m, and Darwin 0.6% m/m. Hobart was the only capital city to record a decline, with prices falling 1.1% in the month. • The recent volatility in the original RP Data-Rismark home price series suggests some care should be taken in interpreting monthly gains. In trend terms we estimate national capital city home prices rose by 1.0% in the month. • Up until June, the growth in home prices had been surprisingly subdued (given the strength in auction sales and clearance rates). However, prices are now clearly recovering from the lows experienced in recent years supported by sharply improved affordability that has released some of what was previously ‘pent up’ home buyer demand. • Moreover, tightening market fundamentals and an extended period of low interest rates should provide increasing support to home prices in the year ahead. • Investor and upgrader demand have strengthened sharply. In contrast, first home buyer demand remains subdued (in part due to the removal of state government incentives). Rising unemployment and heightened job security concerns may continue to weigh on this segment, despite improved affordability • Despite very supportive property market conditions, we expect ongoing home buyer and lender caution will likely avert a runaway boom in home prices and housing credit in this cycle. Information sourced from: ANZ Mobile Lending services
Posted on: Wed, 03 Jul 2013 07:12:47 +0000
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