Home values begin to improve
The 2012-13 Financial Year concluded with a change of fortunes for home owners and property ...
The 2012-13 Financial Year concluded with a change of fortunes for home owners and property investors.
Since the Global Financial Crisis, property owners have eagerly watched for some sentiment of improvement in the market.
According to July figures released by researchers RP Data, home values in Australia’s capital cities increased by a collective 3.8% during the 2012-13 Financial Year. For property owners, this news was a welcomed turnaround from the 3.6% drop in values incurred over the preceding year.
But the market, overall, still displays long-term affordability, which has struck a chord with investors, in particular. In some markets, investors have recently represented 40% of all transactions. Investors have realised a unique opportunity offered by affordable prices and low interest rates to find the next asset for their portfolio.
Growth over the past 12 months was recorded in all capital cities excluding Hobart. Growth was modest in Adelaide (0.2%) and rapid in Darwin (6.1%) and Perth (6.0 per cent).
RP Data – while still acknowledging some level of volatility on a month-to-month basis – believes there is, overall, a discernible trend pointing upward for home values across Australia’s capitals. Investors who are keen to add to their investment portfolio should take advantage of the current window of opportunity before houses record significant improvements in price.