Disruptions caused by natural disasters and low sales volumes have resulted in soft market conditions across the Australian capital cities. Capital city values were down -1.6 per cent (s.a.) while the rest-of-state markets saw a -1.2% (s.a.) tapering in values.
Rismark's joint Managing Director Ben Skilbeck added, "There are growing signs of a soft recovery in the housing market after six months of flat dwelling values since May 2010. Housing credit growth looks to be rising a little, and the early auction clearance rate data in February has been a demonstrable improvement over the sub-50 per cent clearance rates at the end of last year. Our forecasting model implies low single digit capital gains in 2011 based on the assumption that the RBA tightens monetary policy further However it is noteworthy that the futures market is not pricing in the first full interest rate increase until February 2012. If the RBA stays on the sidelines in 2011 there will be material upside risks to our forecasts."
Over the twelve months to the end of January, Perth (-3.8 per cent), Brisbane (-3.7 per cent) and Canberra (-0.6 per cent) recorded a decline in home values.
Brisbane had a 5.2% decline in apartment prices over the past twelve months.