Housing finishes the year strong

by Adam Smith03 Jan 2014
Home values have finished the year strongly, outdoing housing pundits' expectations at the outset of 2013.

At the outset of 2013, many economists had forecast a flat year for property. Fitch ratings predicted that the Australian property market would stabilise in 2013, but would show no signs of growth. But year-ending figures from RP Data show the market outperformed expectations, posting its strongest annual growth since 2009 at 9.8%.

RP Data analyst Cameron Kusher said the strong growth should have come as no surprise.

"Despite the strongest annual value growth since 2009, the rate of growth was not that startling given the low interest rate environment and the previous successive years in which home values fell," Kusher said.

Indeed, the 9.8% increase comes on the back of a 3.8% decline in 2011 and a further 0.4% drop in 2012.

"Cumulatively, from peak to trough, capital city dwelling values were down 7.7% prior to this current growth cycle," Kusher said.