Australia Property News

Interest rate cuts support prices of Australian property

Interest rate cuts support prices of Australian property
Prices of property in Australia’s state capitals rose in September 2012 by the largest amount in over two years. The latest RP Rismark Home Values Index found that house prices increased by 1.4 per cent in September - the largest monthly rise since March 2010.

On a quarterly basis, house prices in the country's eight capital cities rose by two per cent. Experts have attributed the rises to recent interest rate cuts in the country, as we see next.
Real estate prices in major Australian cities rise in September

The RP Rismark Home Values Index found that price gains were strongest in Adelaide at 2.4 per cent, followed by Perth (1.6 per cent), Sydney (1.5 per cent), Melbourne (1.4 per cent) and Brisbane (1.1 per cent).

The other three capital cities all saw property prices fall. The value of homes fell by 0.2 per cent in Hobart, 2 per cent in Darwin and 0.6 per cent in Canberra.

Australian Associated Press reports that the results suggest ‘the weakness in the housing market from earlier in the year has since dissipated.’

RP Data research director Tim Lawless believes that improvements in the property market since mid-year were linked to the Reserve Bank of Australia's (RBA) interest rate cuts in May and June.
He said: “It's no coincidence that housing market conditions bottomed out at the end of May, after the Reserve Bank cut the official cash rate by 50 basis points. A further cut of 25 basis points in June and the anticipation of further rate cuts in the pipeline appear to have instilled renewed confidence in the housing market which has driven the growth in home values."

Rate cuts in Australia have helped to stabilise the country’s housing markets and many of the major locations are now seeing rising prices.

And, I expect house prices in Australia to continue to rise over the next few months.