Capital city house values increase 1.4%
The Australian residential property market is on the cusp of a recovery, with the latest results on home values across the country showing a spike in prices.
The September RP Data Rismark Home Value Index showed that for the fourth month in a row house prices rose Australia wide, with capital city dwelling values rising 1.4 per cent during September - the largest increase since 2010.
Market conditions were most favourable for those selling a house in Adelaide, with property prices increasing 2.4 per cent.
The Perth, Sydney, Melbourne and Brisbane real estate market also showed signs of a recovery, with an increase of 1.6 per cent, 1.5 per cent, 1.4 per cent and 1.1 per cent respectively.
With the sector showing signs of healthy growth, combined with low interest rates, those looking to buy a new property or get a foot on the real estate ladder may favour current economic and market conditions.
RP Data research director Tim Lawless attributed the latest results to an interest rate of 3.50 per cent.
"It's no coincidence that housing market conditions bottomed out at the end of May, after the Reserve Bank cut the official cash rate by 50 basis points," Mr Lawless explained.
"A further cut of 25 basis points in June and the anticipation of further cuts in the pipeline appear to have instilled renewed confidence in the housing market which has driven the growth in home values."