1 August 2012

RP Data – Rismark Home Value Index Release

Dwelling values across capital cities recorded a second month of capital gains in July with dwelling values up by 0.6% over the month following a 1.0% rise in June.

The RP Data-Rismark Home Value indices  posted a second successive rise in capital city dwelling values over the month  of July.  Across the combined capital  cities, dwelling values rose by 0.6 per cent over the month with the rises being  relatively consistently over the first three weeks of July followed by a -0.2  per cent fall over the final week of the month.

Over the three months  to the end of July, capital city dwellings have posted an increase of 0.2 per  cent.

Dwelling values  across the combined capital cities are now down only -0.6 per cent since the  start of this year representing a rebound relative to this year”s low point on  30 May when values were 2.2 per cent below the calendar year starting level.

According to RP  Data”s research director Tim Lawless, the July results were heavily influenced  by improving values across the most expensive capital city markets.

“The July rise was  not as broad-based as the June results, with the month-on-month increase  primarily being associated with the Sydney and Melbourne markets where dwelling  values rose 1.2 per cent and 1.4 per cent respectively.   The July result, when viewed together with  the positive June result, suggests housing markets may be starting to respond  to lower mortgage rates, which according to the RBA”s latest Board meeting  minutes are around 50 basis points below their 15-year average.”

Rismark CEO Ben Skilbeck, added, “Among the  capital cities there remains significant differences in performance. While both  Sydney and Melbourne experienced gains over the month, Adelaide declined -2.5  per cent. On a year to date basis, Sydney values have risen 1.7 per cent while  at the other end of the spectrum, Melbourne and Adelaide have experienced  declines of -2.7 per cent”.

According to Tim  Lawless, at the combined capital city level the July rise was fairly evenly  dispersed between houses and units.

“House values were up  by 0.6 per cent over the month while unit values rose 0.7 per cent.  Over the last 12 months it is clear that unit  values have been the most resilient to value falls with the Home Value Index showing  -1.6 per cent fall in unit values compared with a -2.6 per cent fall in house  values.”

Rental rates are  continuing to rise; across the capital cities weekly rents have risen by 3.3  per cent over the first seven months of the year.  Increases in weekly rents have been recorded  across all capital cities over the last seven months apart from Hobart and  Adelaide.  The largest rises in weekly  rents over the year to date can be found in Perth (13.7%) and Darwin (5.4%).

According to Mr  Lawless, other indicators are also showing some further signs of improving  conditions in the market.  “Auction  clearance rates were recorded at 56.6 per cent over the last week of July, the  highest clearance rate since February last year.  We are also seeing average selling time and  vendor discounting both at healthier levels than what was recorded a year ago  and effective supply levels have also seen some improvement from their highs of  late last year.”

Source : RPData

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