Housing market ‘cooling’
Property price growth across the country is slowing down, with only one city bucking the trend, according to a new report.
Based on figures from the September 2014 quarter, the latest Bendigo Bank/REIA Real Estate Market Facts report shows that the rate of property price growth is slowing nationwide, with Sydney remaining the standout performer.
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According to the report, Sydney’s median house price is the highest among the capitals at $843,994, while Hobart remains the lowest at $360,000 – a difference of $483,994.
REIA CEO Amanda Lynch said the figures, combined with ongoing speculation of further rate cuts, were in fact good news for investors heading into 2015.
“The prospect of not only continuing low interest rates throughout 2015, but also the possibility of a cut, should stimulate market activity in the housing market, with this report ... showing the cooling market provides an ideal time for investors and first home buyers alike.
“With moderating prices in all capital cities except Sydney and Melbourne, first home buyers in particular should feel confident in being able to enter the market,” she said.
REIA’s Housing Affordability Report released last week showed first home buyers dropped to a historic low and made up just 12 per cent of the owner-occupier market in the September quarter.
Ms Lynch, however, said this trend could be set to turn around.
“The combination of a moderating market and low interest rates will hopefully reverse this trend and the re-emergence of first home buyers will be good news for everyone.”
According to the Bendigo Bank/REIA Real Estate Market Facts report, the quarterly Australian weighted average median house price is $620,901, while for ‘other dwellings’ it is $497,239.
Median house prices were down in all capitals except Sydney, which climbed by 3.8 per cent, and Melbourne, which remained unchanged.
Median house price up:
Sydney: 3.8 per cent to $843,994
Median house price unchanged:
Melbourne: $649,000
Median house price down:
Brisbane: 1.0 per cent to $465,000
Darwin: 1.7 per cent to $610,000
Adelaide: 1.8 per cent to $412,500
Perth: 1.8 per cent to $535,000
Canberra: 1.9 per cent to $525,000
Hobart: 5.3 per cent to $360,000