Weekly RP data Australian house price update

ScreenHunter_07 Mar. 20 20.55

By Leith van Onselen

In the week ended 12 December 2013, the RP Data-Rismark 5-city daily dwelling price index, which covers the five major capital city markets, rose by 0.38%. It was the second consecutive increase (see next chart).

ScreenHunter_716 Dec. 13 07.42

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

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Values are up 0.37% so far in December, with three major capitals recording rises and two falls (see next chart).

ScreenHunter_718 Dec. 13 07.45

Since the end of last year, home values have risen by 9.15% at the 5-city level, with all markets experiencing gains (see next chart).

ScreenHunter_719 Dec. 13 07.46

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 primarily by strong gains in Sydney, and to a lesser extent Melbourne and Perth (see next chart).

ScreenHunter_720 Dec. 13 07.47

Values are up 2.9% since the 2010 peak at the 5-city level, driven primarily by strong gains in Sydney, with Perth values also up and all of the other major markets still in negative territory (see next chart).

ScreenHunter_721 Dec. 13 07.48

However, major capital home values have now gained 11.2% since bottoming nationally in May 2012, with all capitals rebounding from their respective troughs (see next chart).

ScreenHunter_722 Dec. 13 07.49

Note: readers are advised not to read too much into short-term movements in the RP Data daily index. This index is volatile and not seasonally adjusted, hence it can give false readings when interpreted over a very short timeframe. There is also evidence suggesting the RP Data daily index is a lagging indicator for the quarterly ABS house price series (see here). Caveat emptor.

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