The second edition of the RP Data Property Capital Markets Report comes at a time when Australian dwelling values appear to be stabilizing after broadly peaking back in October 2010. At a capital city level, housing markets have gained 3.1% in value since the end of May 2012 after falling by 7.4% during the market correction which lasted 20 months.
While labeling the four consistent months of capital gain a ‘recovery’ may be premature, the Property Capital Markets report outlines other market factors which also point towards an improving housing market, at least at a macro level. Stock levels have improved, selling time has stabilized, vendors are discounting their asking prices less and auction clearance rates are consistently holding above the 50% mark. A detailed summary of housing market performance across each state and territory is provided within the report.
With interest rates now at an expansionary setting and likely to stay low for some time, the risks of a further correction in Australian home values over the foreseeable future is looking to be an unlikely occurrence. The report also includes a summary of domestic economic factors that are very much relevant to the Australian housing market as well as expert commentary from some of Australia’s best known economists.
RP Data is a CoreLogic business based in Australia.
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