Prices rise but they are still down on a year ago

Monday 28 May 2012

Sydney's house prices rose again during the April quarter, according to the latest Australian Property Monitors data. The median house price was up by 2.7 per cent, with the figure for units also rising strongly, by 2.2 per cent.

Most price sectors recorded a lift during the three months ending in April, with the $500,000 to $800,000 median ranges posting rises of 3 per cent. The top end of the market - areas with $1.5 million-plus medians - also grew strongly, up by 5 per cent. The top half of the unit market - $500,000-plus - was the best performer with median prices up by 5 per cent.

The positive April-quarter result for Sydney house and unit prices follows a similar outcome for the three months to March, during which prices rose by 1.4 per cent and 2.5 per cent respectively.

Although this year has produced encouraging results, prices are still below where they were a year ago - but only just. Sydney's April-quarter house prices are down by 0.6 of a per cent and unit prices are 0.5 per cent lower compared with the April quarter last year.

Weekend auction clearance rates are climbing steadily and are averaging about 60 per cent for May - above the 50 per cent average at the end of last year and now tracking higher than last May's average of 56 per cent.

Australian Bureau of Statistics data for the March quarter in NSW shows the number of home loans approved for owner-occupiers increased by 11.4 per cent compared with the same period last year.

 

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- Dr Andrew Wilson