Capital city home values continue to rise in April
Home values continue to grow in Australia, but at a slower pace, according to the RP Data-Rismark April Hedonic Home Value Index Results.
Figures from RP Data and Rismark show that dwelling values across the country's capital cities rose 0.3 per cent on the combined capital city index during April. This follows a significant 2.3 per cent increase during March.
"The reduction in the rate of capital gains across the combined capital cities housing market brings growth back into a more sustainable range and will be a welcome relief for first home buyers," said RP Data's Tim Lawless in a May 1 media release.
"A lower rate of capital gains in Sydney and Melbourne where dwelling values surged 22.5 per cent and 16.4 per cent respectively over the current growth cycle, may now signal that these markets are moving through their growth cycle peak. However, we will need to see a few more months of data before we can establish whether a slowing trend is now evident in these cities."
Melbourne and Canberra were the only two capital cities to experience value declines during the month of April, decreasing 0.5 per cent and 1.1 per cent, respectively.
Meanwhile, Perth and Hobart each saw increases of 0.2 per cent, while Adelaide experienced a value rise of 2.1 per cent.
On a quarterly basis, every capital city experienced capital gains over the past three months. The largest gains were seen in Darwin (5.1 per cent) and Sydney (4.1 per cent).
Rismark CEO Ben Skilbeck highlighted Sydney's value gains in a historical perspective.
"The last time Sydney strung together 11 consecutive month-end increases was in November 2007 when the market added 14.7 per cent and before that in November 2002 when it delivered 19.6 per cent growth," Mr Skilbeck said.
"The record for Sydney consecutive growth months was 12 recorded in Nov 1996."
Data also showed that Sydney's median house price has broken the $800,000 mark for the first time on record, reaching $802,000 over the three months ending in April. This puts Sydney's median house price 30 per cent higher than Melbourne's and 68 per cent higher than Brisbane's.
At the same time, experts attribute this gargantuan growth to Sydney's high share of expensive homes.
Regardless, these numbers should give Australians looking to buy a property a better idea of which areas may offer more affordable housing options and the best chance for capital growth moving forward.