ABS contradicts house price data
In contrast to recent data revealing a decline in house price growth, the Australian Bureau of Statistics (ABS) has found the weighted average of Australia’s house prices grew over the June quarter, based on preliminary estimates.
According to the ABS, the price index for established houses for the weighted average of the eight capital cities increased 3.1 per cent over the quarter and 18.4 per cent over the year.
Growth was strongest in Melbourne and Sydney over the quarter with house price growth of 4.9 per cent and 3.6 per cent recorded respectively.
The figures are in contrast to the RP Data/Rismark figures released on Monday which showed no growth over the same quarter.
Westpac senior economist Matthew Hassan said the ABS figures needed to be taken with some “caution”.
“As well as being a preliminary estimate that will be revised as more data becomes available, the Index also covers only part of the market (detached homes excluding apartments, townhouses and terraces etc.), and is prone to biases when there are significant compositional shifts in activity (the surge in first home buyer activity would have biased price estimates lower in 2009 and higher in 2010),” Mr Hassan said.
“These issues are particularly problematic when trying to gauge turning points in the market – as we are right now,” he said.