Weekly RP Data Australian house price update

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ScreenHunter_07 Mar. 20 20.55

By Leith van Onselen

In the week ended 13 March 2014, the RP Data-Rismark 5-city daily dwelling price index, which covers the five major capital city markets, rose by 0.74%. It followed last week’s strong rise of 0.92% (see next chart).

ScreenHunter_1661 Mar. 13 18.53

Values rose in all major capitals (see next chart).

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ScreenHunter_1662 Mar. 13 18.56

Values are up 2.80% so far in 2014, driven by big gains in Melbourne and Sydney:

ScreenHunter_1663 Mar. 13 18.57

Over the past 12 months, home values have risen by 10.26% at the 5-city level, again led by Sydney and Melbourne (see next chart).

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ScreenHunter_1664 Mar. 13 18.58

The next chart plots the daily movements on a 14-day moving average, in order to smooth volatility. As you can see, the uptrend continues, driven once again by strong gains in Sydney and Melbourne (see next chart).

ScreenHunter_1665 Mar. 13 18.59
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Values are up 6.5% since the 2010 peak at the 5-city level, driven primarily by strong gains in Sydney, with Perth and Melbourne values also up but the other major markets still in negative territory (see next chart).

ScreenHunter_1666 Mar. 13 19.00

However, major capital home values have now gained 15.0% since bottoming nationally in May 2012, with all capitals rebounding from their respective troughs (see next chart).

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ScreenHunter_1667 Mar. 13 19.02

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.