Dwelling values in the capital cities rise further
The latest CoreLogic RP Data Home Value Index results for February have now been released and show that overall, capital cities within Australia have seen dwelling values rise by an additional 0.3 per cent.
With this additional rise of 0.3 per cent for the month of February, it brings the combined capital city dwelling values 2.5 per cent higher over the rolling quarter, whilst 8.3 per cent higher over the twelve months to the end of February.
Sydney once again holds on to the lead with dwelling values 13.7 per cent higher than this time last year, whilst Melbourne sits in second place with a rise of 7.4 per cent. In third place is Brisbane with dwelling values rising by 5.9 per cent followed by Adelaide with 3.4 per cent rise. Other capital cities have grown by less than 2 per cent over the past twelve months.
In Sydney, the average median dwelling price sits at $680,000, compared to Melbourne’s $515,000 median dwelling price, whilst you can find a dwelling in Brisbane for approximately $452,000.
According to Tim Lawless, head of research at CoreLogic RP Data, “The slower rate of capital gain in February may come as a surprise to some who were expecting lower mortgage rates to instantly propel the pace of home value growth higher. We are already seeing the effect of lower mortgage rates, with auction clearance rates surging to the highest levels we have seen since 2009 and valuation activity across CoreLogic RP Data valuation platforms reaching new record highs based on daily averages over the second half of February. Despite the flurry of activity, it will likely take some time to see this flow through to a higher rate of capital gain."
He also added, “"We might not see the lower interest rate environment stimulate the housing market as much as it has in the past. Weaker jobs growth, higher unemployment, declining affordability, low rental yields and political uncertainty are all factors that could dent consumer confidence and provide some counter balance to the rate cuts and quell any additional market exuberance."
Published on 9th of March 2015 by Marty Stanowich