Published on July 26th, 2012
House prices on the rise
Consumer confidence is returning to the Australian housing market in the lead up to the spring sale season, according to new research.
The Australian Property Monitors House Prices Report, released today (July 26), has recorded a rise in the median house value in the majority of the country's capital cities, with Darwin and Brisbane the only exceptions.
Australian Property Monitors (APM) senior economist Dr Andrew Wilson told the AAP that the results were promising.
"There is increased confidence amongst buyers heading into the spring quarter with the economy not facing similar issues as it was a year ago," he said. "It's looking positive particularly for Sydney and Perth."
According to the APM, it is no surprise that consumers are returning to the property market. A string of interest rate cuts, improvements in overall housing affordability and reduced cost of living pressures have all helped to boost consumer confidence.
While the real estate experts are forecasting this trend to continue to the end of the year, it seems that buyers are keen to act quickly.
Sydneysiders have long bemoaned the cost of living in this city and the median house value of $642,425 is still high.
Across the country, house prices have risen 3.6 per cent in the six months to June and 0.4 per cent in June – which is a strong result given the economic difficulties that have shocked world markets in recent years.
There have also been noticeable improvements in auction clearance rates, with houses on average spending less time on the market.
However, it would appear that more people are looking for units and apartments to live in as a gateway to homeownership.
Unit prices in the six-month period to June were recorded as being up by 3.6 per cent despite being down 0.2 per cent on pre-GFC levels.