Australian capital city home values have increased by 1.4 percent over the month of September, according to the RP Data-Rismark home value index.
1.4 percent marks both the biggest month-on-month increase since March 2010, and the fourth consecutive month-on-month rise.
According to RP Data/Rismark, this points to a housing market recovery.
Adelaide recorded the biggest increase on a state-by-state basis, up 2.4 percent over September.
Index results at September 30, 2012
||Change in dwelling values %
||Median dwelling price|
Source: RP Data
On a quarterly basis, capital city dwelling values recorded a 2 percent capital gain, which is the highest quarterly result since the three month period ending May 2010.
“The recovery in the housing market is broad based and not simply attributable to a seasonal spring uptick. Over the 4 months from end May to end September actual Australian capital city house values have increased by 3.4 percent. If we adjust this to take into account seasonality, the increase is still a strong 2.9 percent, which represents an annualised pace of 9 percent per annum,” Rismark CEO Ben Skilbeck says.
According to Tim Lawless, RP Data research director, other factors are supportive of a housing market recovery: auction clearance rates are about ten percent higher compared to last year, capital city listings are lower compared to the same time last year and vendors are discounting asking prices by a lesser amount.