Residential property value growths 'unlikely to be maintained'
The 2.8 per cent growth in residential property values in the first quarter will not likely be sustained, according to an report from RP Data analyst Cameron Kusher.
Historically, ten out of the last 17 years have shown the first quarter to have the greatest value growth for each year.
This suggests that the recently developed appreciation may be part of a trend, and highlights the impact of seasonality on property values.
First time buyers and investors into the property market might benefit from researching these trends before making a significant financial investment.
Growth periods like these need to be understood in context, alongside statements from multiple property sources for a buyer or investor to get a fuller picture of the property market.
Master Builders Australia, for example, recently reported investment declines in the construction industry in Melbourne, saying: "Over the past year to February, building investment across the outer-east dropped from $1.78 billion to $1.71 billion."
The Housing Industry Association is another property institution recording slips in the sector, reporting a 2.3 per cent decline in new home commencements from an upwardly revised September quarter.
With high levels of seasonality in the property market, investing in, buying or selling a house often takes research and understanding.