Just in, RP Data has released its home values index for November. Capital city home prices have risen by a seasonally adjusted 0.1% over the month and regional values by 0.3%. Here is the release on AAP via Business Spectator:
Australia’s capital city home values rose by a seasonally-adjusted 0.1 per cent in November, according to the RP Data-Rismark Home Value Index, the first lift in almost a year.
Regional house values recorded a 0.3 per cent rise in November, the biggest increase since December 2010.
“(This) augurs well for housing activity during the first quarter of 2012, which we project will rebound solidly,” Rismark director Christopher Joye said.
“The best proxy for housing demand – the number of new home loans approved for purchasing established properties – has risen robustly every month since its nadir in March.”
I am not sure what Christopher Joye is referring to when he states that the number of new home loans approved for purchasing established properties has risen strongly. According to the below chart from RP Data, finance commitments for owner-occupied dwellings (excluding refinancings) remain well below average levels:
Nevertheless, the modest bounce back in home values after 10 consecutive monthly declines will be welcomed by the industry and is supported by the release last week of the narrower Residex home price index, which registered a 0.23% increase in November for houses and a 0.36% rise for units.
The upcoming release of the November credit aggregates data by the RBA should provide some colour on the future direction of the market.
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