New research from the Real Estate Institute of Australia has revealed that Adelaide is the only capital city not to experience a decrease in median prices for houses and other dwellings in the March quarter.
Data from the Real Estate Institute of Australia has shown decreases in the median values for houses and other dwellings across almost all capital cities for the March 2019 quarter.
The REIA Real Estate Market Facts report showed that the weighted average capital city median house price decreased 2.2 per cent to $722,028, while for other dwellings, there was a 1.4 per cent decrease to $568,584.
Adelaide was the only capital city to record growth in both housing and other dwelling values, with the former increasing 0.7 per cent to $481,500 and the other dwelling values up 3.1 per cent to $369,000.
At a glance:
Of the other capital cities to record increases, Darwin's median house prices went up 1.8 per cent to $502,500, while Hobart's other dwelling values rose 4.2 per cent to $481,000.
The weighted average vacancy rate for the eight capital cities decreased to 2.8 per cent during the March quarter indicating a slight tightening of the rental market
REIA President Adrian Kelly said while the figures showed a continuing decline in the market since June 2018 for both house and other dwellings, a number of factors pointed to a stabilising market.
“With the election out of the way and no change in property taxation, a cut in official interest rates in June and the possibility of a further cut later this year we should see the market, which is already showing signs that the rate of price falls is declining, stabilise.”
The view from 1802/18 Rowlands Place, Adelaide. As seen on Luxury List.
“The rate cut, unlike the last series of cuts in 2015 and 2016 which stimulated investor activity, will benefit first home buyers who have seen their numbers decrease nationally to 23,403 in the March quarter 2019, down 19.7 per cent for the quarter and a decrease of 11.6 per cent compared to the corresponding quarter in 2018.”
According to the report, there has been a quarterly decline in the volume of both investor and owner-occupied finance of 20.7 per cent and 21.6 per cent, respectively.
Mr Kelly said the imposition of prudential controls by APRA and changes in banks’ lending criteria had contributed to the trend.
“For owner-occupied finance it's the largest quarterly decline since March 2010, and for investor finance, the largest decline since March 2004," he said.
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