News

Prices Slowly Emerging

By Phillip Elmowy

AFTER almost two years of gloom, house prices in Sydney and Melbourne are showing some signs of improvement and real estate agents hope lower interest rates will accelerate the trend.

Median house prices were up marginally across the country in the December quarter for the first time since late 2010, according to data from Australian Property Monitors.
While the figures indicate tentative signs of a recovery, it is too early to tell if the nation’s housing downturn has finally been halted.

In the three months to December, prices remained stable or rose in Sydney and Melbourne, with the latter’s prices up 1.1 per cent on the previous quarter, APM said.

Values in other capital cities, apart from Adelaide and Hobart, fell over the same period.
“The small growth in the national median house prices was due to an increase in buyer activity in the bottom end of the market in Sydney and, by contrast, the top end of the market in Melbourne,” APM’s senior economist, Dr Andrew Wilson, said.

”[This year] will provide mixed outcomes for housing markets with some capital cities set to revive while others will remain flat.”

Property listings were down last year but consumers were more confident following the rate cuts, the chief executive of Stockdale & Leggo, Peter Thomas, said. The strong prospect of further rate cuts would help vendors, he said.

The year-end boost followed a 12-month rout where prices declined year-on-year in all of Australia’s capitals, with Brisbane’s weary home owners suffering the biggest fall of 7.5 per cent, APM’s figures show.

Even in Sydney, the country’s most resilient market, prices fell over the year by 1.3 per cent, while the median price dropped 3.1 per cent in Melbourne, 3.5 per cent in Canberra and 5.2 per cent in Perth to December. But home owners were more likely to see a levelling out of prices or even small gains this year, due to the rate cuts, HSBC’s chief economist, Paul Bloxham, said.

Source Sydney Morning Herald

Up to Date

Latest News

  • Whats the benefit of having more green in our home!?

    Why we should all have more plants in our life & our home!? As more of us live the urban life, greening up has become a vital wellbeing issue. Think about it: from the house to the car to the office and back again, how much nature did you get … Read more

    Read Full Post

  • Market Predictions Expected for 2018

    Mortgage rates are expected to keep rising Financial markets predict the Reserve Bank will lift the official cash rate off the record low 1.5 per cent level late in 2018, which would have a measurable impact on household mortgage payments. But even if that doesn’t happen, borrowers should prepare themselves … Read more

    Read Full Post