House prices continue to ease even after rate cut: Residex
House prices eased by 0.51% during October to a median of $432,000, taking the annual downturn to 3.43%, according to Residex.
Hobart, down 2.46%, and Sydney, down 1.65%, were the weakest October performers.
Over the year the weakest capital cities were Brisbane, down 5.51%, and Perth, down 4.93%
Area | Median Value | Growth | |
Year Ending Oct 2011 | Last Month | ||
ACT | $530,500 | -0.68% | -1.15% |
$394,000 | -3.61% | -0.83% | |
SA Country | $252,500 | -2.12% | -1.36% |
$432,000 | -5.51% | -1.46% | |
QLD Country | $366,500 | -2.99% | -0.03% |
$496,500 | -4.03% | 1.19% | |
Northern Territory | $472,000 | -2.89% | 1.14% |
$375,500 | -2.53% | -2.30% | |
TAS Country | $269,500 | -2.64% | -0.18% |
$574,500 | -4.36% | -0.93% | |
VIC Country | $332,500 | 2.78% | 1.81% |
$465,500 | -4.93% | -0.36% | |
WA Country | $350,500 | 0.44% | 1.95% |
$657,000 | -1.63% | -1.65% | |
NSW Country | $334,000 | -3.11% | -1.19% |
Australia | $432,000 | -3.43% | -0.51% |
“The Residex latest figures on housing data do not point to a ‘bounce’ in housing demand and activity leading into the well-publicised rate cute decision,” Residex CEO John Edwards notes.
“Furthermore, auction clearance rates for Sydney seem to indicate that, even following the rate cut, there was little to no impact, which is a little unusual.
“The interest rate adjustment potentially was not enough to restore confidence in the community.
“The RBA will need to adjust rates a little further to stabilise, and I expect another rate cut will come in the near term, which could potentially be in the order of 0.5%.
“The volatility in our stock markets is going to continue but our housing markets, because of our high level of ownership and funding structure, will not present the same level of risk as other asset sectors,” Edwards notes.
“The press that flows from the European crisis causes uncertainty in all areas of our economy, in particular our housing markets,” says Edwards, who is currently overseas.
“We, as Australians, are ‘worlds apart’ from the crisis here in Europe and if it was not for this situation, considering the improving position of the United States (albeit slow), we would be rejoicing at our new found growth that has been driven by the demand for resources.”
“Yes, Europe is going to cause global problems, but Australia is not dependant on Europe; our economy will be balanced against our growing export resource market driven by developing Asia.”
