House prices continue to rise

House prices continue to rise

Posted on Friday, November 01 2013 at 12:22 PM

Capital city dwelling values increased by 1.3 per cent over the month of October, driven largely by the strong-performing Sydney market.

Data released today by RP Data and Rismark
international shows a continued growth across many markets, with the rolling 12
month combined capital city index recording its fastest pace in three years.

Across all the capitals, home values are
now up 7.9 per cent over the past 12 months and 8.2 per cent over the year to

RP Data senior research analyst Cameron
Kusher says Sydney and Melbourne are continuing to have a strong influence on
the national result.

“Sydney home values increased by 2.4 per
cent in October and have increased by 5.5 per cent over the past three months,”
Kusher says.

“In Melbourne, home values increased by 1.2
per cent in October and recorded an increase of 3.8 per cent over the past
three months.

“For the first 10 months of this year,
Sydney and Melbourne home values have performed very strongly, achieving growth
of 13.4 per cent and 8.7 per cent respectively.”

After several somewhat sluggish months,
Brisbane home values posted a 1.4 per cent increase in October, however median
prices in the Queensland capital remain some 8.4 per cent below the previous

Ben Skilbeck, chief executive officer of
Rismark international, says there are signs of growing confidence in Brisbane.

“While Brisbane auction clearance rates are
typically low in comparison to Sydney and Melbourne, due to differences in the
preferred sale mechanism, Brisbane clearance rates are approaching the 50 per
cent mark.

“That was last consistently observed in
2009 when values increased by 7.1 per cent over the year.”

Elsewhere, the October index results confirmed
that dwelling values also rose in Adelaide by 0.3 per cent and Darwin by 1.6
per cent.

It was a different story in other centres
where dips were recorded, with a 0.2 per cent slip in Perth, a 2.3 per cent
decline in Hobart and a 1.5 per cent fall in Canberra.



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