RP Data weekly Australian house price update

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ScreenHunter_03 Apr. 02 11.00

By Leith van Onselen

In the week ended 24 April 2014, the RP Data-Rismark 5-city daily dwelling price index, which covers the five major capital city markets, fell by 0.09%. It was the first weekly fall in values in eight weeks (see next chart).

ScreenHunter_2174 Apr. 24 12.22

Values fell in two major capitals but rose in three (see next chart).

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ScreenHunter_2176 Apr. 24 14.32

Values are up 0.46% so far in April, with values rising in three major capitals and falling in two (see next chart).

ScreenHunter_2177 Apr. 24 14.33
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Values are now up 4.02% so far in 2014, driven by big gains in Sydney and Melbourne, with Perth values falling:

ScreenHunter_2178 Apr. 24 14.35

Over the past 12 months, home values have risen by 11.91% at the 5-city level, again led by Sydney and Melbourne (see next chart).

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ScreenHunter_2179 Apr. 24 14.36

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 by exceptionally strong gains in Sydney (see next chart).

ScreenHunter_2180 Apr. 24 14.37
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Values are up 7.8% 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_2181 Apr. 24 14.38

However, major capital home values have now gained 16.4% since bottoming nationally in May 2012, with all capitals rebounding from their respective troughs (see next chart).

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ScreenHunter_2182 Apr. 24 14.38

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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.