The housing market across Australia’s capital cities was soft leading up to the RBA’s decision to cut interest rates in November, according to research by RP Data.
The latest RP Data-Rismark Home Value Index indicated that capital city values slid 0.5% in seasonably-adjusted terms over October, while the 10 months prior saw dwelling vales decline 4%.
Sydney and Canberra were the most resilient markets, showing flat to positive growth over October (0% and 1.6%, respectively), while values declined by -0.6% in Melbourne and -1.6% in Brisbane.
RP Data research director Tim Lawless said year-to-date results highlighted city differences more clearly. In Canberra and Sydney, dwelling values moved little in the 10 months up to October, up 0.9% and down 1.4%, respectively. This was a sharp contrast to Brisbane, where home values were down -7.5%, and Melbourne, which saw falls of -5.8%.
Lawless added that premium housing markets are continuing to record the largest value falls.
“The more affordable end of the housing market has weathered market conditions better than homes at the premium end of the spectrum,” he said.
“We have also recently seen an uptick in first home buyer participation numbers suggesting the cheapest end of the market may be responding to improved affordability earlier than other market segments.”
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