Australian House Prices Fall

"Aussie Dwelling Values Fall After 17 Consecutive Monthly Gains

30 July 2010 RP Data – Rismark Home Value Index Release Capital city dwelling values down 0.7% in month of June with no growth over June quarter Largest fall since April ’08 Rest of State dwellings also realise no growth in June quarter After 17 consecutive months of solid growth, dwelling values across Australia’s capital cities recorded their first monthly decline of 0.7% (seasonally-adjusted) in June according to the market-leading RP Data-Rismark Hedonic Home Value Index. This was the largest monthly fall in home values since April 2008. The June outcome follows on from a clear trend in the decline in monthly seasonally-adjusted growth rates in Australia’s capital cities over February (+1.0%), March (+0.9%), April (+0.6%) and May (+0.3%)." "Despite the recent moderation in capital gains, the risk of a dramatic decline in Australian dwelling values remains remote. According to Mr Lawless, “As the RBA has independently confirmed, arguments in favour of house price “bubbles” remain, in my opinion, overstated. Australia’s housing market has a structural shortage of roughly 200,000 homes, which has been substantiated by the National Housing Supply Council. While the inventory of unsold homes has risen of late, our Market Activity Index suggests that new listings activity will slow over the coming months. And although average time on market and vendor discounting have also expanded with the weaker conditions, these remain in line with historically reasonable levels.” “If we saw blow-outs in average time on market, re-listings, and vendor discounting, it would set off a few alarm bells. This, however, is not currently the case” Mr Lawless said." Brisbane apartment prices did ok. Brisbane Apartments - medium prices Month of June (indicative) - up 1.2% Quarter - up 1.9% Year to Date - up 5.7% Year on Year - up 5.9% Medium price over quarter - settled sales - $380,000 Brisbane Apartments - medium prices Month of May - up 0.9% Quarter - up 1.6% Year to Date - up 4.5% Year on Year - up 7.9%