Melbourne median house price at $556,500 as April sees slight decrease in home values: Residex

Melbourne median house price at $556,500 as April sees slight decrease in home values: Residex
Melbourne median house price at $556,500 as April sees slight decrease in home values: Residex

Melbourne house values fell by 1.14% over April to a median value of $556,500 to be up 2.05% over the quarter, according to the latest figures from property market analysts Residex.

RP Data-Rismark also had Melbourne house prices down over April, but by a smaller 0.5%. 

Meanwhile, constrained by a lack of affordability, Sydney recorded the steepest fall in its median house value in April of all the major capital cities and regions, according to Residex.

Sydney house values fell 1.42% over April to a median of $684,000.

Over the quarter Sydney house values are virtually unchanged at 0.84%. They are up 3.23% over the past 12 months.

The decline in Sydney house prices went against the overall trend of an 0.83% rise in house values over April to a median of $437,000 with Residex forecasting a "moderate" rise in housing values over the coming months off low interest rates.

Residex has house values up 2.07% over the quarter and 2.8% over the past year.

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RP Data-Rismark recorded a 0.6% decline in house values over April with its daily index pointing to a 1% decline over May.

According to RP Data-Rismark, Sydney house prices fell 0.4% over April.

Residex CEO John Edwards says Sydney's unaffordability makes it “overly sensitive to changing economic conditions” resulting in negative growth in April.

According to Residex affordability figures, Sydney home borrowers are left with just $880 in left over cash each week once the home loan is paid off (assuming a variable home loan rate of 5.4%, 25 year loan term pa, average family tax rate of 17.5% and a 20% deposit).

The other capital city market to record a decline was Canberra, with house values down 1.12% over April to a median value of $519,500, down 0.56% over the quarter, according to Residex.

RP Data-Rismark had Canberra house prices down 0.6% over April.

 


The positive effects of the mining boom continued to be felt in Perth and Darwin, according to Residex.

Perth house values lifted 1.37% over April to be up a healthy 4.5% over the past three months with a median value of $503,000.

Darwin house values rose 2.41% over April and are up 3.78% over the quarter with a median house value of $550,000.

Over the past 12 months to April 2013, Darwin house values are up 12.41%, the only capital city property market to record double-digit growth annual growth. Darwin’s ten year average growth rate is 10.49%.

Brisbane house values rose 1.42% in April to a median of $437,500 while Adelaide and Hobart values were unchanged.

In the more volatile unit market, Perth was the standout over April with a 2.62% gain to a median value of $448,000.

Over the past year, Perth unit values are up 11.46% with rents rising over 14% over the past year from $390 to $445 and annual sales up 24.57% compared with the corresponding period, according to Residex.

There were also strong gains recorded in Adelaide’s unit market (2.12%) and some growth in Brisbane’s unit market (1.3%).

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"Overall, the Australian housing market is improving," says Edwards.

"While I don’t favour considering houses and units as one segment because they have very different return attributes, it is usefully to combine them to simply get a general indication of the direction the market is heading.

"The median value of all dwellings in Australia is approx $425,000, which is around its peak value achieved in January 2011.

"In the last 3 months dwelling prices increased by about 1% while they increased by approximately 1.7% in the last 12 months. Clearly, the majority of advances in the market have taken place in the last three months. Sales activity remains low but it is improving. It is now close to the level achieved in December 1999.

"Overall, the recent interest rate reduction will help ensure the advance in housing values that are currently being seen continues, albeit at a moderate level.

"Rental yields across the nation are rising and will continue to do so as fewer people venture into home ownership and renting becomes more the norm. 

"The only exception to this is Canberra where there is a stock oversupply. There must also be some uncertainty here towards the employment level given the pending Federal Election and the likely outcome of a change in government," he says.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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