Housing prices are up in most capital cities and as an average across regional Australia, while the average situation for units is a rise in both the capital cities and also regional Australia.
In most cases, the annual price increases are moderate, although individual locations are performing well above the average situation.
Yet some headlines including “Property prices falling across Australia” are still appearing in mainstream media. This results from Sydney’s situation – where Sydney houses have dropped 6% in the past year, dragging down the average for “combined capitals” (-2.2%). However, Hobart’s house price index is up 14%, while Canberra, Melbourne, Brisbane and Adelaide are all higher than 12 months ago, though only moderately.
Regional Australia is also up, led by Newcastle, Geelong, the Sunshine Coast, Launceston and Ballarat.
In addition, according to AMP Capital Chief Economist, Shane Oliver, the Reserve Bank of Australia will not be lifting the official interest rate until 2020.
This follows this week’s decision by the RBA board to hold the cash rate at its current record low of 1.5%, in a move predicted by most industry pundits.