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ISCOVER
Staff Reporter
House price growth in Australia’s capital cities stagnated in the first quarter of 2013, new research has revealed.
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“Today’s figures present a weak update for the housing industry,” Housing Industry Association (HIA) senior economist Shane Garrett said.
“The price of established homes in Australia’s capital cities edged up by just 0.1 per cent in the first quarter of this year. In three of the eight cities surveyed, prices actually dropped in the first three months of this year.
“These figures confirm our long-held position that any recovery that is underway in the housing market is a delicate one. The robust price growth we saw at the end of 2012 has petered out and once again the market will have to struggle to regain momentum. Mortgage lenders as well as the Reserve Bank need to step up to the plate in terms of interest rates at this time.”
Mr Garrett said rising house prices, provided they occur at a manageable pace, play a key role in bolstering household confidence.
“A sustained return to manageable price growth will lead to a multitude of knock-on benefits across the wider economy,” he said.
“The importance of a strong housing market should not be underestimated.”
Across capital cities, in the March 2013 quarter the established house price index rose by 0.2 per cent in Melbourne, 1.2 per cent in Perth, 1.9 per cent in Darwin and 0.2 per cent in Canberra.
Prices fell by 0.3 per cent in Brisbane, 0.1 per cent in Adelaide and 0.3 per cent in Hobart.
