Home values on track to rise for third month running, albeit slowing: RP Data Rismark

Alistair WalshDecember 8, 2020

Home values have been on the rise nationally over August, on track for the third consecutive monthly rise, according to RP Data Rismark home value index.

The report notes prices have risen a modest 0.3% over the first 17 days of August and unless there is any deterioration in the daily readings over the rest of the month, RP Data's research director Tim Lawless predicts a positive month of value change.

The rises were consistent across all capital cities except Perth, where prices eased 0.9%  over the same period.

Sydney has been the only city to experience price growth for the year to date, with prices rising 2.1% to August. Across all capital cities prices are down 0.5% for the year to date.

If the trend for this month continues it will be the third month running where dwelling values have improved across the combined capital city markets, which Lawless suggests is a good indication that market conditions have moved through the bottom of the cycle.

Although home values have continued to increase over the month, the rate of growth has slowed down.

Values rose by 1.0% in June, 0.6% in July and the report expects the August result to be inline or slightly lower than the growth in values in July.

"With no interest rate cuts over recent months it will be interesting to see whether the slowing continues or momentum builds as we enter the spring selling season," Lawless noted in his blog.

Alistair Walsh

Deutsche Welle online reporter

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