News & Media
Property prices fall - is this the start of a new trend?
20 Jun 14
Property prices have started to decline across the nation's capitals, leading one group to suggest this could be representative of a wider trend.
RP Data Research Director Tim Lawless explained how the current growth cycle got underway in June 2012 and as they typically last two years, this one could soon be coming to an end.
"The rolling quarterly rate of growth peaked in August last year and we have been seeing weaker auction clearance rates since late February when the capital city clearance rate hit 76 per cent," he noted.
As rental yields become more compressed in some capital cities, Mr Lawless believes it's about time the growth trend started to moderate.
Not only this, problems in the wider economy could mean people pause for thought before making big-ticket purchases such as real estate.
"There is a very strong correlation between levels of consumer confidence and housing market activity. If we see sentiment levels remaining low it is likely that housing market activity will be more sedate," Mr Lawless suggested.
His comments follow the release of the May RP Data - Rismark home value index, which showed a decline in prices for the first time in 12 months.
During the previous three months, capital city dwelling values increased 0.7 per cent, which makes it the lowest quarterly rate of dwelling value appreciation in almost a year.
This month-on-month fall is likely to be partly down to seasonal changes, but Mr Lawless believes it could also signal a gear change for the property market as a whole.
As prices start to decline, new opportunities are opened up for anyone who might want to seek real estate tips and enter the market for the first time.
Having an expert on your side - such as someone with real estate training - can really add value to your search for the perfect property.Back