The September RP Data Rismark Home Value Index results marked the fourth consecutive month-on-month rise in home values, further cementing the fact that a housing market recover is underway...Capital city dwelling values rose by 1.4 per cent over the month of September, the largest month-on-month rise recorded since March 2010. Adelaide led the way with the strongest results where values were up 2.4 per cent, followed by Perth at 1.6 per cent over the month, Sydney at 1.5 per cent , Melbourne at 1.4 per cent and Brisbane values up 1.1 per cent. On a quarterly basis, capital city dwelling values recorded a 2.0 per cent capital gain which is the highest quarterly result since the three month period ending May 2010. All capital cities apart from Hobart and Perth have seen home values rise over the quarter...
“It’s no coincidence that housing market conditions bottomed out at the end of May, after the Reserve Bank cut the official cash rate by 50 basis points. A further cut of 25 basis points in June and the anticipation of further rate cuts in the pipeline appear to have instilled renewed confidence in the housing market which has driven the growth in home values,” Mr Lawless said.
“This renewed strength in the housing market is likely to be one of the key deliberation points when the Reserve Bank meets today. The Bank will want to keep a lid on housing prices from a financial stability perspective, while at the same time ensure interest rates are low enough considering the decline in commodity prices and Australia’s terms of trade,” Mr Lawless said.
