Market continues on flat trajectory - for now

By |

Australia's property markets are continuing on a sideways trajectory, but the bottom of the market is approaching, according to new data released today.

The RP Data/Rismark Home Value Index for June has revealed that the median property price across Australia's capital cities fell by 0.2% in June. This is the sixth

straight month in which capital city values have fallen, although RP Data points out that the rate of decline has been slowing from the January peak of -1.2%.

Over the June quarter, the only city to show a median value increase was Canberra at 0.5%. Sydney was the next best performer, seeing marginal negative growth of 0.2%.

Melbourne, Brisbane and Perth saw the largest overall falls over the three-month period, with Melburne seeing a dip of 1.6%, and both Brisbane and Perth falling by 1.3%.

Regional markets, meanwhile, saw overall negative growth of 1.2%,led mainly by weakness in coastal Queensland and Western Australian markets. Resources-led markets remain "quite healthy".

"Market conditions are clearly being dampened by low levels of consumer confidence fuielled by interest rate speculation and global economic jitters," said RP Data's head of research, Tim Lawless. "The higher-then-expected CPI figures earlier this week are likely to reignite the interest rate debate, which is not going to assist with an improvement in consumer sentiment."

Even so, there are signs that the market is stabilising.

"Some of the key leading indicators have recently shown improvement, suggesting the housing market may be approaching the bottom of the cycle," added Lawless. " The average selling time reached a high of 58 days backin March and is now down to 52 days. In contrast, the level of vendor discounting has risen to 6.8% as vendors become more willing to meet market price expecetations. Listing volumes have recently levelled."

Lawless also points out that rental markets remain tight, and that unit markets have continued to outperform detached houses.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : alexandra hills , geelong west , willoughby east , rockville , freshwater

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here