Home values up 8% in 9mths

Posted on 4/11/2009  

Houses prices nationally rose 2.5% in the September Quarter, according to the latest RP Data – Rismark Home Value Index.

 

The index found solid rises in house prices in Sydney, Melbourne, Adelaide, Darwin and Canberra, no change in Brisbane and small declines in Perth and Hobart.

 

This differs from the recent House Price Indexes from the Australian Bureau of Statistics, which recorded solid price rises in all eight state and territory capitals. The variance is generally explained by differences in methodology and parameters. But the trend revealed by both measures is that house prices are showing solid growth nationally.

 

Rismark International managing director Christopher Joye says the growth in Australian home values in 2009 has been “remarkably consistent”, with cumulative capital gains in the first nine months of the year of 8.1%. This follows the 3.8% peak-to-trough decline in 2008.

 

Tim Lawless, research director at RP Data, says there was a 2.8% rise nationally in the March Quarter, 2.6% in the June Quarter and 2.5% in the September Quarter.

 

Lawless says the buoyant market conditions in the first half of the year should be superseded by more normal growth rates. “In all likelihood, the national market will return to more sustainable growth rates as rising mortgage rates dampen the recent exuberance,” Lawless says.

 ENDS 

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