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Capital city dwelling values rose 0.5 per cent in August, according to the RP Data-Rismark August Hedonic Home Value Index.
The half a per cent rise sees the cumulative recovery in capital city home values increase to 7 per cent since the market bottomed out in May last year.
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The August result, however, is a slowdown from July’s 1.6 per cent increase and June’s 1.9 per cent increase.
Tim Lawless, research director at RP Data, said the slowdown was welcome after strong growth in recent months had fuelled debate around the sustainability of Australian dwelling values.
“The half a per cent gain over the month of August is a much more sustainable rate of growth and will be a welcome turn of events for policy makers,” he said.
Mr Lawless also said he expects a strong spring season this year.
“Housing market conditions are looking set to provide what could be described as a near-to-perfect spring season, with the number of homes currently available for sale around 15 per cent lower than a year ago,” he said.
“The lower effective supply levels are a result of fewer new listings being added to the market and a higher rate of absorption, with a 30 per cent increase in sales activity compared with a year ago,” Mr Lawless said.
