Weekly RP Data Australian house price update

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).

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).

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

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).

ScreenHunter_1667 Mar. 13 19.02

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15 Responses to “ “Weekly RP Data Australian house price update”

  1. reusachtige says:

    BOOM times for Australia!

  2. Gramus says:

    Holy shit.

    With the Chinese about to pump more credit into their economy this is only going to get more extreme as well.

    Australia’s housing market aint about Australians anymore.

  3. Explorer says:

    Heaven help those in sydney who were going to buy in April 2012 but were persuaded by the “Don’t buy now” slogan often appended to MB comments.

    A 20% rise in house prices on a 10% equity is a 200% rise in equity from 10 units to 30 units.

    Maybe it’s now that is the time not to buy, given the huge rise from the trough.

    You make your decision either way and win or lose accordingly, sometimes only temporarily.

    • AB says:

      “Heaven help those in sydney who were going to buy in April 2012 but were persuaded by the “Don’t buy now” slogan often appended to MB comments.”

      Yes, heaven help those who can’t study different points of view and make their own decision that they’re comfortable with.

      The potentially lost capital gain is far from the worst that will likely happen to them in life.

    • reusachtige says:

      Yes, the whole DON’T BUY NOW was pretty lame at the time. People could have made a mint but instead went with that weak slogan. It totally fkt me over, I chose the wrong path. Rubbish advice indeed!

    • swizzy says:

      A 20% rise in house prices on a 10% equity is a 200% rise in equity from 10 units to 30 units.

      See! This is what happens when we import all our skilled staff, and move all our local people into the FIHRE sector. We end up sucking at maths and think our bullsh*t jobs are essential.

  4. squirell says:

    this is madness, but as we all know the madness is sponsored by our policy makers. Would kangaroo poo be a sound investment if it got subsidies, tax incentives, kangaroo poo ownership grants, kangaroos were culled to limit supply, and most importantly purchase of kangaroo poo helped one gain citizenship??

    • Greconomics says:

      Not madness, it’s simple economics and psycho-nomics.

      The property investment cycle has shifted from fear to greed.

      If all your conditions were satisfied, kangaroo poo would be a GREAT investment and ONLY mad people WOULDN’T invest in kangaroo poo.

      If the rules of the game favour only 1 possible outcome (i.e. winning), keep playing until the rules change.

      • reusachtige says:

        Exactly! Everything is geared to 100% success rate. Housing is only a win! People on here need to stop backing the losing side.

  5. The Patrician says:

    Double digit national annual house-price inflation.

    Job well done idiots.

    A monument to the vandalism of our “prudent” RBA, deliberately running sustained negative real interest rates and actively encouraging unproductive malinvestment.

    These clowns are wrecking the joint.

    • Andy! says:

      They are. Pity I can’t put GS down as my guarantor on a $100m loan to buy whatever.

    • reusachtige says:

      Wrecking the joint? LOL. A lot of people are doing well out of this, actually, the vast majority are… whether that is right or wrong. Learn to accept it, capitulate!