On Friday RP Data-Rismark released its June month figures showing that housing prices are cooling off.
The RP Data-Rismark hedonic home values index for June reveals a decline of 0.7% in seasonally adjusted terms, the first fall since October 2008 . The 0.7% decline follows average monthly rises of 1.0% in the second half of last year, accelerating to 1.2% per month in the March quarter, but then stepping down to barely positive average monthly growth of 0.1% in the June quarter.
The median house price growth over the last 12 months has eased back to 10.5% , down from 12.3% in the year to May and a recent peak of 13.6% to March this year .
The figures showed that the middle tier of prices of our capital city suburbs held up the best, while the most expensive (20%) of capital city suburbs have seen price declines in prices now for the past three months. Similarly the bottom 20% of suburbs by price also saw prices fall over the last 2 months whereas the mid tier has also seen an overall cooling but prices just turning negative in June .
According to RP Data all capital city cities recorded price declines in June.
The largest in June was in Perth (down 1.5%; but up 5.1% for the year), thenMelbourne (down 1.4%/+16.0% for the year), Canberra (-1.4%/+10.6% for the year), Darwin (-1.0%/+16.8% in the last 12 months), Brisbane (-0.8%/+4.5% for the year), Adelaide (-0.7%/+9.1%), while Sydney prices dipped 0.1%, up 10.4% for the year.
In May, Hobart prices fell 3.1%, but to be up 3.9% over the last 12 months.
This result is not surprising, all the leading indicators pointed to a slowing market and gives the RBA the ability to keep interest rates on hold.
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