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House prices are on the rise

House prices are on the rise, according to new data.

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The latest research from Australian Property Monitors found national house prices increased by 0.9 per cent over the quarter, and units also rose by 0.1 per cent.

All capital cities with the exception of Brisbane and Adelaide saw house prices rise, with Sydney and Melbourne both experiencing strong growth of 1.4 per cent and 1.6 per cent respectively over the first three months of 2012.

Brisbane is currently the most affordable of the mainland capitals with a median house price of $433,244, while Sydney remains Australia’s most expensive capital with a median house price of $641,037.

Capital city unit markets recorded mixed outcomes with Brisbane, Adelaide and Melbourne all recording significant falls in median prices over the March quarter.

Sydney was a solid performer in the unit market with median prices rising by 2.5 per cent to $462,145.

Hobart, Darwin and Canberra also recorded rises in median unit prices over the quarter.

“Increased buyer activity together with rising auction clearance rates has translated into improvements in median price outcomes in most centres,” Australian Property Monitors’ senior economist Dr Andrew Wilson said.

“The Perth, Brisbane and Sydney markets remain the best prospects for growth over 2012, and although Melbourne’s performance has been encouraging so far this year, this may prove to be short-lived if the Victorian economy continues to deteriorate.

“Early signs however are certainly positive for most Australian housing markets with the likelihood that buyer and seller confidence will continue to rise in 2012 after a subdued 2011.”

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