Dwelling values are likely to have remained relatively unchanged in the three months to November, says RP Data senior research manager, Cameron Kusher, ahead of Monday’s home value index results announcement.
Kusher says that, in the past three months, house values in the five largest capital cities are likely to have increased by around 0.6%.
“Based on the month-to-date data, each of the five major capitals, except for Melbourne, is set to record a modest increase in value throughout the month.”
The latest data, according to Kusher, reinforces the idea that Australia’s housing market – at least at a macro level – is moving past the correction phase, which saw values fall by 7.5% between the end of October, 2010 and the end of May, 2012.
“The improvement in the market conditions can be attributed to interest rate settings and the prospect of a low interest rate environment over the medium term.”
Kusher says housing market conditions aren’t likely to be a major focus area at the Reserve Bank Board meeting next Tuesday.
“The RBA is likely to be fairly comfortable with the modest increase in home values over recent months as well as the increase in dwelling approvals and will be hoping that current interest rates settings, or any changes they choose to make, will allow the housing market to continue on a path of modest growth.”