House Prices Suggest Small Recovery
In February 2013, Australian house prices achieved a small increase. Melbourne is showing some signs of recovery following a slump of two years and Sydney also saw a small rise.
Australia-wide, house values increased by a combined rate of 0.3% in February and this is a sign of the housing market recovering marginally.
The latest data provided by RP Data Rismark showed that Melbourne house values rose by 1.5% and Sydney home prices went up by 0.1%. Canberra experienced a lift of 1.9% and in Darwin an increase of 2.3% was observed.
Tim Lawless, RP Data Researcher, said that while February saw increases in about half of Australia’s capital cities, the rest saw a drop. In Adelaide, Perth, Brisbane and Hobart house values decreased in the region of 0.8 to 1.1%.
The low interest rate policy of the Reserve Bank is considered to be having a profound impact on the economy. HSBC Economist Paul Bloxham noted that consumer confidence was comparatively high, the share market was up and improvements continued to be seen in the housing market.