Welcome news for first home buyers in May.

June 05, 2014
Bianca Long

After stalling in April, capital city dwelling values retreated 1.9% last month, representing the first month on month decline for 12 months and possibly signalling a stepped slowdown in housing demand.

This in itself is welcome news for first home buyers who have been severely out-punched in the last year by cashed up investors.

The slowdown is also good news for mortgage holders as it removes one of the more immediate concerns for the RBA and as such strengthens the case for a 2.5% cash rate being maintained well into the foreseeable future.

I am not sure whether the last quarter slowdown is the beginning of a new step change or merely a seasonal adjustment.


                     May 14     Qtr        YoY

Sydney             -1.1%     2.2%     16.6%      

Melbourne         -3.6%    -1.9%       9.9%

Brisbane           -1.7%      2.2%      5.8%

Adelaide            -1.8%     1.6%      4.3%

Perth                  0.8%     0.0%      5.7%

Hobart               -0.6%     0.8%      1.4% 

Darwin                1.0%     5.5%      9.7%

Canberra             0.1%     1.1%      2.6%

Combined           -1.9%     0.7%     10.7%

Posted in: First home buyers

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