The average home in Australia gained $9,064 in value in just one month and is now worth $486,939.
The 1.9 percent rise is the largest single monthly climb recorded since the RP Data Rismark Index began in
Property prices are now up 7.9 percent so far this year, rising in every major city across Australia.
Christopher Joye, managing director at RP Data, said the strong monthly gain allays fears that the wind down of
the First Home Owner’s Grant was taking the heat out of the market.
“In contrast to claims that this is a first time buyer bubble, the cheapest 20 percent of suburbs in Australia have
actually underperformed both the mid-priced market and Australia’s 20 percent most expensive suburbs since
the housing market bottomed in December 2008,” said Mr Joye.
He pointed out that all major lenders now require a minimum 10 percent deposit and are applying the strictest
credit standards homebuyers have seen in over a decade.
Despite the squeeze in the credit markets, almost 80 percent of auctions are clearing and average home values
have now risen 3.8 percent past their February 2008 peak, RP Data’s research shows.
Over the first eight months of 2009, average prices have risen the most in Melbourne – up 11.6 percent – while
property values have climbed 8.6 percent in Sydney, 5.2 percent in Brisbane, 3.1 percent in Adelaide, 4.1
percent in Perth, 9.7 percent in Darwin, 6.7 percent in Canberra and 2.7 percent in Hobart.
However, Mr Joye said he did not expect the recovery to run at the same pace in the coming months.
“We expect medium term growth rates to be more measured as mortgage rates normalise back to between 7-8
percent. This would bring the cost of housing finance back in line with its 2000-2001 levels, which is notably well
below the searing 9.6 percent highs endured by borrowers in August 2008 care of the RBA,” he said.
-Real estate news