Perth is the only capital city where house prices are down. This is according to Tim Lawless from RP Data. However, whilst a vendor may begin to get more for his property he will have to wait some more to get his price.
Rismark International head of research says high construction costs provide a natural minimum to substantiate rental under property in major centers.
"Given the high costs of construction materials and labour it is almost impossible to find a new house and land package in Sydney for under $400,000. Valuations in areas such as Sydney Melbourne and Perth were moving up and down on a daily basis. The Reserve Bank meets tomorrow but it is widely expected to keep official interest rates at a 12 year high of 7.25 per cent.
Property prices have slumped in the light of high interest rates. Based on the economists projections this will mean property being depressed for the rest of the year. As a consequence of this, the demand for home loans is drying up. This is expected to continue till the end of the year.
The number of loans taken out for owner occupied homes in Australia fell by 3 per cent (seasonally adjusted to 57,503) for the third month in a row. Economists were expecting a forecast of 1.9 per cent fall for the month. "Consumers are being hammered from all sides" said Craig James from CommSec "it's not just the increase in RBA rates but individual banks have been forced to lift rates, the cost of petrol has being going up and food is going up
City by City
Houses prices up18.65 per cent since Jan. and
Units 26.22 per cent increase
Houses and units both up by 1.7 per cent
Prices have fallen average 1.5 to 2.0 per cent
Ave price increase 1.2 per cent
Down about 1.0 per cent