(Courtesy of News.com.au)
HOMEOWNERS have received a bout of good news at year’s end, with a private survey showing the first rise in capital city home values in eleven months.
Capital city home values lifted 0.1 per cent in November – the first increase since December 2010, according to the RP Data-Rismark Home Value Index, out today.
Regional house values also increased the most since December 2010, rising by 0.3 per cent.
Rismark director Christopher Joye said the figures were an optimistic reflection of the sector’s potential in 2012. “For Australia’s capital city and regional markets, this was the single best monthly result since December 2010,” he said. “It augurs well for housing activity during the first quarter of 2012, which we project will rebound solidly.
“The best proxy for housing demand – the number of new home loans approved for purchasing established properties – has risen robustly every month since its nadir in March.”
The monthly result helped stem the fall over the year, with a decline of 3.7 per cent in capital city values from last November. Regional home values reported a change of -2.6 per cent over the twelve months to November.
Investors realised a total return of 1.2 per cent in capital city property in 2011. There were still noted differences between house values in each state, with Sydney and Canberra reporting the best values across the year.
Significantly, the data showed flat-to-positive gains in Sydney, Melbourne, Perth and Canberra for the month of November. Darwin and Brisbane were the worst performers in November. Year on year, Brisbane led the decline in value, followed by Melbourne then Adelaide.
