Broadly positive house price outlook for rest of 2014: ANZ

The recent ANZ Australian Housing Market Update has pointed to a broadly positive outlook for sales and price growth in the coming months.

The depth of home buyer demand in Melbourne was tested over the recent record breaking auction weekend, said ANZ Research’s David Cannington.

“Melbourne’s clearance rate held up well (70.6%), reflecting solid home buyer sentiment,” Cannington explained using RP Data's statistics.

Meanwhile, Cannington noted that Sydney’s clearance rate of 78% was also indicative of buoyant home buyer sentiment.

Analysis of Sydney's weekend auction results differed, with APM and RP Data at odds with each other over the market’s movements.

Cannington said that auction clearance rates have eased since their early-2014 peaks, pointing to further moderation in house price growth “in coming months”. However, ANZ remain “cautiously optimistic” in their outlook.

In recent weeks, Sydney, Melbourne and Perth have recorded the strongest growth in home prices, with Adelaide posting lower results. 

“Nonetheless, looking through the weekly volatility, home prices are increasing in trend terms across all capital cities, reflecting a broadly positive outlook for housing sales and price growth in the coming months,” Cannington said.