RP Data Australian house price update

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ScreenHunter_07 Mar. 20 20.55

By Leith van Onselen

In the week ended 16 January 2014, the RP Data-Rismark 5-city daily dwelling price index, which covers the five major capital city markets, rose by 0.24%. It was the fourth consecutive weekly increase in values (see next chart).

ScreenHunter_881 Jan. 16 17.55

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

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ScreenHunter_882 Jan. 16 17.59

Values are up 0.51% so far in January, with three major capitals recording rises and two falls (see next chart).

ScreenHunter_883 Jan. 16 18.01
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Over the past 12 months, home values have risen by 9.50% at the 5-city level, led by Sydney and Melbourne (see next chart).

ScreenHunter_884 Jan. 17 06.24

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).

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ScreenHunter_885 Jan. 17 06.27

Values are up 4.1% 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_886 Jan. 17 06.28
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However, major capital home values have now gained 12.5% since bottoming nationally in May 2012, with all capitals rebounding from their respective troughs (see next chart).

ScreenHunter_887 Jan. 17 06.30

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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.