March 02, 2011 – Home values have not been doing well this past January. This was evident in the RP Data-Rismark Hedonic Home Value Index for Capital City home values have plunged by 1.6 per cent in January. This record has been attributed to the natural trend of the month of January being a very quiet month for sales. Normally, sales are higher during the later months of the year. Moreover, the natural disasters that have plagued the east coast states have instilled fear and have disappointed probable buyers to buy houses for sale. The flooding in Queensland, NSW, and Victoria and Cyclone Yasi in Northern Queensland have all contributed to the plunge of home values.
According to Tim Lawless of RD Data, “The volume of sale transactions in January is normally much lower than other months due to the seasonality of the market. This year the downturn in activity has been compounded by the spate of natural disasters experienced around the country,”
Records show that Perth has been noted to be the worst performing city with a figure of -3.8 per cent. It is followed by Brisbane with a -3.7 per cent. Melbourne, on the other hand, has been seen with a notable +3.6 per cent while Sydney has an even better +2.5 per cent record.
It is expected that RP Data will have better records when results are updated next month.
It is also interesting to note that homeowners outside the capital city are also experiencing the same difficulty as home for sale values fell by 0.2 per cent until the end of January.
Rismark’s Joint Managing Director, Ben Skilbeck, is saying that there are tentative signs of recovery in the housing market in the later part of this year.
