HOUSE PRICES MAY HAVE REACHED “HIGH WATER MARK”

Posted on April 28th, 2014 · Posted in News

The Sydney boom has “well and truly faded”, despite sharp price growth over the past year, according to Australian Property Monitors.

The research group’s quarterly property survey found that median prices across Australia reached $614,000 in the March quarter, an increase of 11.3 per cent on the previous year.

The two big capital cities recorded double-digit growth, while the three smaller capitals reported losses.

Sydney prices jumped 16.9 per cent to $783,000, while Melbourne’s climbed by 11.7 per cent to $604,000.

Perth grew 8.4 per cent to $611,000, Brisbane increased 6.0 per cent to $467,000 and Adelaide rose by 4.1 per cent to $450,000.

Canberra prices fell 1.6 per cent to $558,000. Prices in Darwin and Hobart increased over the year but fell over the quarter.

Darwin’s median house price reached $675,000 – an annual gain of 3.2 per cent and a quarterly decline of 1.6 per cent.

Hobart reported a median of $326,000 – an annual gain of 3.2 per cent and a quarterly decline of 2.5 per cent.

Meanwhile, national median unit prices grew 8.3 per cent over the year to reach $460,000.

Sydney jumped 12.7 per cent, while Melbourne and Perth climbed by 5.4 per cent.

There were also price rises of 2.7 per cent for Darwin, 1.0 per cent for Adelaide and 0.5 per cent for Brisbane.

Canberra prices fell 0.9 per cent, while the Hobart market slumped 8.4 per cent.

Australian Property Monitors’ senior economist Andrew Wilson said the “Sydney boom has well and truly faded”, while the national market has also cooled.
“The moderation of boom-time results in Sydney can be expected to continue as emerging affordability barriers and declining investor activity impacts the market,” he said.
“Nationally, the December quarter 2013 is likely to be the high water mark in the cycle for growth rates.

“Following the impact of historically low interest rates, local supply and demand factors are reasserting their predominant influence, particularly in regard to employment and incomes growth.”

 

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Original Story Source: www.theadviser.com.au