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ISCOVER
Staff Reporter
Dwelling values were up a modest 0.3 per cent in October, according to RP Data.
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The latest RP Data Rismark Hedonic Home Value Index found Australian capital city dwelling values increased by 4.3 per cent in the first 10 months of the year – broadly in line with disposable income growth.
Based on the Index, the market peaked in May 2010, with capital city home values tapering after this time.
RP data’s research director Tim Lawless said since the market started to cool in June the cumulative decline in dwelling values to the end of October has been less than one per cent across the capitals, suggesting the market is slowing at a controlled pace.
However, Mr Lawless said the latest rate hike would have a negative impact on housing and stop the market from slowing at a controlled pace.
“Leading indicators in the market continue to foreshadow weak market conditions going forward,” Mr Lawless said.
“Capital city auction clearance rates are generally bobbing between 50 and 55 per cent week to week suggesting that vendors still need to adjust their price expectations in order to make a sale. The average selling time for private treaty sales has increased to 48 days for houses from a low of 39 days late last year and sellers are now discounting their listed prices by about 5.7 per cent on average to make a sale compared with 4.1 per cent for units.”
