Weekly RP Data house price analysis

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By Leith van Onselen

After seven consecutive weeks of declines until the end of May, the RP Data-Rismark daily home values index has, for the second week in a row, registered a weekly rise, with national capital city home values registering a 0.01% increase in the week to 13 June 2012 (see below chart).

Like last week, the rise was driven by Sydney, Brisbane, and Perth, whose values rose by +0.10%, +0.45% and +0.40% respectively. By contrast, Melbourne continued its long run of falls (-0.26%), with Adelaide once again declining sharply (-0.75%):

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So far in 2012, national capital city home values have declined by -2.13%, driven by sharp falls in Melbourne (-5.65%). Sydney (+0.05%) and Adelaide (-0.54%), by contrast, have remained resilient:

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Finally, over the past 12-months, national capital city home values are down -4.95%, again led by Melbourne (-7.94%), with Sydney (-3.32%) and Perth (-1.59%) remaining more resilient:

With the banks having passed-on the lion’s share of the latest interest rate cut, and with home prices having registered modest consecutive weekly rises after seven weeks of losses, there are tentative signs that the housing market has, for the time being at the national level, stabilised.

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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.