House prices hit bottom of the cycle
Although modest improvement in property prices is evident in most capital cities over the June quarter, price levels in some centres remain below those recorded a year ago, according to Australian Property Monitors’ Quarterly Housing Report.
National house prices rose marginally by 0.4 per cent in the quarter, however units fell by 0.8 per cent.
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Despite an increase of 0.2 over the quarter for houses, Sydney is still down 1.0 per cent to $642,425.
Melbourne and Adelaide also recorded falls over the year to June 2012.
Brisbane’s median house price has fallen for eight consecutive quarters and remains the most affordable mainland capital city at $427,933.
In contrast, the median house prices in Canberra, Perth, Darwin and Hobart have all increased since this time last year.
Canberra’s house prices showed continued resilience, up 1.1 per cent over the quarter and now 0.3 per cent higher than the previous peak recorded in March 2011.
“Most Australian capital city housing markets appear to have bottomed out in the December quarter 2011 with modest price rises evident over the first two quarters of 2012 in Sydney, Melbourne, Perth, Canberra, Hobart and Darwin,” Australian Property Monitors’ senior economist Dr Andrew Wilson said.
“This trend can be expected to continue in most capital city markets over the second half of 2012, underpinned by the prospects of an active spring selling season signalled by recent improvements in auction clearance rates and recent interest rate cuts.”