31/10/2011 - 09:42

Housing market correction slows: RP Data

31/10/2011 - 09:42

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Housing market correction slows: RP Data
ONLY WAY IS UP: Housing analysts say they are starting to see the first green shoots in the housing recovery.

Perth home prices appeared to arrest their slide in September, falling just 0.1 per cent over the month to be largely steady for the first time in more than 15 months, new data says.

RP Data-Rismark’s Home Value Index for September put Perth’s median house price at $440,000 in September, 1.5 per cent down for the quarter, and 5.1 per cent down on the previous year.

The fall of 2 per cent in August was the 15th consecutive month in which Perth median house prices had dropped according to RP Data, prompting analysts to predict that the market had finally bottomed out.

Today’s data was similar to last week’s analysis from Australian Property Monitors, which said house prices were down 1.6 per cent over the September quarter, for a year-on-year fall of 5.7 per cent.

Nationally, median house prices were down 0.2 per cent across capital cities in September, 1.3 per cent for the quarter and 3.4 per cent for the year, for a median dwelling price of $450,000, RP Data said.

The best performing capital city over the September quarter was Darwin, with a 0.3 per cent dip in values, while Hobart home values headed south, down 6.6 per cent over the three months to September.

“Housing market conditions are starting to show some green shoots now, at least at a  macro level,” RP Data research director Tim Lawless said.

“While the September index declined further, the -0.2 per cent result was the best outcome we’ve seen in seven months.

“The 8.1 per cent lift in consumer confidence, as well as rising speculation that interest rates are heading south soon, are likely to be the drivers of this improvement.”

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