D
Damian George
New Member
Australian House prices Outlook
RP Data-Rismark data for June show Australian house prices fell for the first time in 17 months, with national median prices decreasing 0.7% (seasonally adjusted) in June to be up 10.5% over the past year. Price growth continues to be following a clear trend decline to more sustainable single-digit annualised growth.
Home prices fell across all capital cities. While Melbourne home price growth continues to outperform in annual terms (+16.0%),only Perth showed a larger monthly fall in June. Sydney home prices fared best in June, remaining largely unchanged (down 0.1% for the month +10.4% over the past year).*After recording negative monthly growth in May, both Brisbane and Perth home prices fell again in June to be down 0.8% (+4.5% over the past year) and 1.5% (+5.1% over the past year) respectively. *
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Signalling that the recent round of RBA rate hikes is impacting housing affordability and demand, house price growth and expectations have shifted closer to sustainable levels. The times of last years strong double digit growth in home prices experienced across most capital cities are now behind us. While we expect higher official interest rates into late-2010 and 2011, continued strength in employment and income growth should ease the pressure on housing affordability.
With expectations that the Australian economy will benefit from a renewed China-led commodity price boom and a continued underlying shortage of Australian housing, we do not expect this months fall in house prices to continue. We do expect that house price growth in annual terms will continue to slow to low single digit rates over the year ahead.
For the full story please visit ANZ - Personal - Online Banking
RP Data-Rismark data for June show Australian house prices fell for the first time in 17 months, with national median prices decreasing 0.7% (seasonally adjusted) in June to be up 10.5% over the past year. Price growth continues to be following a clear trend decline to more sustainable single-digit annualised growth.
Home prices fell across all capital cities. While Melbourne home price growth continues to outperform in annual terms (+16.0%),only Perth showed a larger monthly fall in June. Sydney home prices fared best in June, remaining largely unchanged (down 0.1% for the month +10.4% over the past year).*After recording negative monthly growth in May, both Brisbane and Perth home prices fell again in June to be down 0.8% (+4.5% over the past year) and 1.5% (+5.1% over the past year) respectively. *
*
Signalling that the recent round of RBA rate hikes is impacting housing affordability and demand, house price growth and expectations have shifted closer to sustainable levels. The times of last years strong double digit growth in home prices experienced across most capital cities are now behind us. While we expect higher official interest rates into late-2010 and 2011, continued strength in employment and income growth should ease the pressure on housing affordability.
With expectations that the Australian economy will benefit from a renewed China-led commodity price boom and a continued underlying shortage of Australian housing, we do not expect this months fall in house prices to continue. We do expect that house price growth in annual terms will continue to slow to low single digit rates over the year ahead.
For the full story please visit ANZ - Personal - Online Banking