Ktee

Australian House Prices Set to Rise

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    AUSTRALIAN house prices reached three-year highs in the June quarter and look set to keep climbing.

     

     

    National median house prices rose by 2.8 per cent in the June quarter - and 5.4 per cent in the year to June - a level of growth not seen since March 2010, the Australian Property Monitors quarterly housing report shows.

     

     

    It was the third consecutive quarterly rise for national house prices.

     

     

    Unlike the price boom of 2009 and 2010, buying hasn't been driven by the Federal Government's first-home owner boost.

     

     

    APM senior economist Andrew Wilson said the patchiness seen in the housing market last year was diminishing.

     

     

    "The usually quieter winter market is set to be one of the hottest on record,'' he said.

     

     

    "Unlike 2009 and 2010, buyer activity and prices growth will be generated by underlying local drivers.

     

     

    "Buyer activity is set to accelerate through the remainder of 2013, with market momentum and prices clearly on the rise.''

     

     

    The lowest interest rates in decades, rising consumer confidence and generally solid economic conditions had boosted buyer activity over the first half of 2013, Mr Wilson said.

     

     

    Sydney, Canberra and Perth recorded their highest ever median house prices over the June quarter.

     

     

    Melbourne recorded the strongest growth for the quarter with a rise of 5 per cent, and 6.1 per cent for the year.

     

     

    http://www.news.com.au/realestate/buying/house-prices-picking-up/story-fndban6l-1226686145142

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    I think you will find that all this spruiking doesn't really apply to Adelaide:

     

    "Adelaide house prices rose by +0.8% over the June quarter

    and are up marginally by +0.7% over the year. The median price for units also rose over the June quarter up by +1.2% over the quarter and fell by just -0.1% over the year. The Adelaide median house price remains the lowest of all the mainland capitals at $435,153"

    For more detailed analysis read this http://www.macrobusiness.com.au/2013/07/weekly-rp-data-house-price-update-22/

    and this http://www.macrobusiness.com.au/2013/07/apm-house-prices-lifted-in-june-quarter/

     

    Edited by Anne B

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    Guest BurgessFamily

    Depends on what you are looking at. I read last week that the 'down-turn' was over and Melbourne was expecting a massive boost of 10%-20% in property prices in the next year. They said to get in why you could afford too, before it becomes way too expensive. Banks and investment groups couldn't be any happier.

     

    The reason why Adelaide is behind is because of the relatively flat population growth.

     

    (the average block size is expected to shrink too, heading towards 300ms)

    Edited by BurgessFamily

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    Always take these newspaper articles with a pinch of salt - sometimes I think the 'journalists' (and I use this term very lightly) must have most of their Super in property..... They've been promising rises in house prices here for at least the last three years - whilst funnily enough prices have been falling and overpriced properties stay on the market for ages until they drop their price to something more reasonable.

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