As the number of homes available for purchase has risen during Spring, the housing market has entered the festive season with significant momentum.
According to the RP Data Core Logic Home Value Index, combined capital city home values have increased by 10.9 per cent, over the 12 months to August 2014. While much of the growth is being driven by activity in Sydney (16.2%) and Melbourne (11.7%), values have increased in all capital cities - Adelaide (5.9 %), Brisbane (5.4%), Darwin (5.4%), Perth (3.5 %), Hobart (2.8%) and Canberra (1.4%).
It’s expected that sellers will continue to be more empowered than buyers, however some leverage is starting to move slightly in favour of buyers.
The average time a property remains on the market appears to have reached a zenith with a slight rise over recent months despite remaining at near historically low levels.
Discounting by vendors has also risen slightly, indicating that buyers are now in a slightly better position when negotiating the contact price.
As always, there is likely to be a continued variance in performance from city to city and region to region, however we believe that home values will continue to increase over the remainder of 2014.
Source: Cameron Kusher – RP Data Snr. Research Analyst