Their house price report for October, broke the mould from recent months, revealing a pull-back in prices after several months of rises, with RP Data-Rismark recording a 1% fall over the eight capital cities in October to a median national dwelling value of $460,000.
This small fall in October follows dwelling value gains of 1.4% in September, no change in August, a 0.6% rise in July and a 1% gain in June.
A noticeable decline was the 3.2% fall in Melbourne unit values over the month, down 6% year-on-year to a median of $420,000.
“In particular, Melbourne unit values have shown a greater decline in values than any other mainland capital city over the past 12 months,” notes RP Data-Rismark.
If you’ve been following my blogs you’ll know I’ve been concerned about an oversupply of new and off the plan apartments in certain parts of Melbourne.
Our markets are weak.
RP Data research director Tim Lawless says the weak October result highlights how “delicately balanced the Australian housing market is”.
“Whether the October decline is a blip on the path to a recovering market or a sign of further weakness is yet to be seen.
“Other indicators are suggesting the market has gathered some strength, with auction clearance rates holding firm around the 60% mark across the two major auction markets and owner-occupier housing finance numbers showing steady improvements since February 2012, albeit from a very low base.”
However, he also points out that despite the current cash rate of 3.25% being just 25 basis points higher than the “emergency lows seen in 2009, there has yet to be a real improvement in consumer confidence or housing market transaction volumes”.
“Until we see optimists outnumber pessimists in consumer confidence surveys, a recovery in the housing market is likely to remain precarious,” he says.
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