Housing prices up strongly in Oct: RP Data
RP DATA
Housing prices rose strongly in October after stalling in September according to early signs from the RP Data CoreLogic home value index.
In the first 29 days of October, prices in the mainland state capitals were up by an average of 1.2 per cent, after a tiny rise of just 0.1 per cent in September.
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The smaller states continued to “underperform”, according to RP Data’s national research director Tim Lawless, but early indications are that both Sydney and Melbourne will rack up price gains of more than 1 per cent for the month.
“As we move into the third month of spring, the housing market remains relatively strong. However, despite the strong monthly result, the annual trend in capital gains has been moderating since a recent peak in April earlier this year,” Mr Lawless said.
Last weekend Melbourne held a record weekend of auctions with more than 1800 properties going under the hammer.
But property listings are on the rise nationally as the spring selling season heats up. RP Data reserach showed that nationally there were 51,081 new properties on the market in the week ending October 26, with another 195,655 re-listed.
Source: RP Data
Capital cities listings accounted for 64 per cent of the total new listings, but accounted for just 37 per cent of re-listings.
“This highlights that capital city stock is being absorbed much quicker than stock in non-capital city regions. As a result the number of re- listed properties is much higher across the regional areas of the country,” RP Data research analyst Cameron Kusher said.
Mr Kusher said the data revealed interesting insights into the property market nationally.
He said in Sydney an ongoing rise in home value was being fuelled by “low stock levels and low mortgage rates”.
By contrast in Melbourne stock levels were high, which Mr Kusher said could suggest price rises were driven by speculation rather than shortage of supply.
The final RP Data CoreLogic home price measures for the whole of October will be released on Monday.
– with AAP