RP Data yesterday released its daily index results for 30 June, which has enabled me to calculate the dwelling values results at the 5-city level, which covers the five major capital city markets.
According to RP Data, dwelling values nationally rose by 1.98% at the 5-city level, with gains recorded in all major capitals (see next chart).
Since the start of the year, values have risen by 2.98% at the 5-city level, with all major markets experiencing increases (see next chart).
Over the past 12 months, values have risen by 3.87% at the 5-city level, with all major markets experiencing increases (see next chart).
Values are down -2.9% since peak at the 5-city level, with all major capitals except Sydney in negative territory (see next chart).
However, major capital home values have now gained 4.9% since bottoming in May 2012, with all capitals rebounding (see next chart).
Later on today, RP Data will release its full report, which includes price results for the other major capitals, namely Hobart, Canberra and Darwin.
As noted last month, after prices had fallen for two consecutive months by a total of -1.7%, my advice is not to read too much into the monthly RP Data results. The RP Data index is inherently volatile and not seasonally adjusted (see next chart). Hence, the pull-backs experienced in April and May likely reflected some reversion from the extraordinarily strong gains posted in the March quarter, much of which reflected seasonality (the March quarter is typically the strongest quarter of the year). Likewise, June’s gains likely reflect, in part, some upward revision from the last two month’s pull-backs.
The housing market is certainly recovering. But probably nowhere near the pace infered by June’s results.
