Australian Capital City housing values on the increase

A recent report released by RP Data has shown that the Australian capital city housing market has started the year on a relatively positive footing. Capital city home values have increased by 2.3 per cent over the first four months of 2013.

On an annual basis, capital city home values have risen by 2.7 per cent over the past year, ranging from a 5.9 per cent increase in Darwin to a -1.4 per cent fall in Hobart. Despite the varying performances, each city has recorded value growth over the first four months of 2013.

Although capital city home values have been trending higher since June of last year, they remain -3.6 per cent lower than they were at their historic high. The magnitude of decline ranges from just -0.4 per cent in Sydney to -11.5 per cent in Hobart.

The number of house and unit transactions across the capital cities has also shown some subtle improvements over recent months. Based on the annual number of sales to February 2013, there has been a 1.4 per cent increase over the previous year.

Although only minor change, further improvements in housing finance commitments so far this year suggest that sales activity is likely to increase further.