Australian Home Values Rose to Nearly 10 per cent Over the Financial Year
CoreLogic RP data for the last financial month of the year 2014/15 revealed that the housing values rose to 9.8 per cent this year, which is slightly lower than that from the last year.
“Interest rates cuts in February and May could have factored into pushing capital gains higher”, said Tim Lawless, CoreLogic RP Data’s head of research.
He said, “Growth conditions had been moderating from April last year through to the end of January 2015”.
“With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009, capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time; Sydney homes are selling in just 26 days and Melbourne homes are selling in 32 days.”
If we talk about the figures of building approvals released by ABS, there is a steep rise 218,442 for the 12 months to May, increasing by 2 per cent compared with April and up 13 per cent year-on-year.
Highest increase was seen in Sydney to 16.2 per cent over the year, and for Melbourne the rise was 10.2 per cent.
Even in this strong market of Sydney and Melbourne, Perth values fell 0.9 per cent in the past 12 months while Darwin home values lost 2.9 per cent.
With a median dwelling price of $77200, Sydney was ranked the most expensive city, whereas with a median dwelling price of $77200 Hobart was the most affordable city over the quarter.
News Source: http://www.brokernews.com.au/news/breaking-news/house-prices-almost-10-higher-over-financial-year-202257.aspx