July 05, 2011 – House prices in capital cities have fallen once again.
As prospective home buyers opt to save rather than buy Australia houses for sale in today’s property market, a fall of almost three per cent in the cost of houses for sale in Australia has been observed so far in 2011.
According to the RP Data-Rismark Hedonic home value index, a drop of 2.7 per cent in the prices of houses in the capital cities in Australia was recorded through the first five months of 2011.
Furthermore, the report also said that a drop of 2.3 per cent in the house prices was being observed in the 12 months to May.
As potential home buyers focused on saving, choosing to save their pennies rather than spending on real estate as they were worried about the economy, the housing market has soften.
Tim Lawless, RP Data research director said that sales volumes in real estate were down about 25 per cent below the five-year average.
Meanwhile, on the prior year, the number of listings has risen by 25 percent.
According to Mr. Lawless, nowadays, the average Australian is satisfied to pay-down debt and wait for some economic certainty to return before they join again in the property market despite the low rate of unemployment and the strength of the resources sector.
Likewise, the high Australian dollar has made local housing more expensive for emigrant, particularly at the luxury home end of the market, according to Ben Skilbeck, Rismark joint managing director.
Sydney the Lone Survivor
According to the report, Sydney is the only market to have recorded a rise in property values in the year to May, with house prices in the Harbour City having an increase of 1 per cent.
However, the resources-linked cities of Brisbane and Perth house price has recorded the biggest fall, with the median house price declined at 5.9 per cent and 7.5 per cent, respectively.
The falling house prices in Perth since late 2007 is said to be attributed to the lack of buyer demand, even though there is strong population growth and low unemployment in the West Australian capital.
