Cooling housing market has a silver lining

December 10th,2014

A new report released today shows a cooling housing market across Australia with strong growth in Sydney the exception.

The latest edition of the Bendigo Bank/ REIA Real Estate Market Facts report, released today by the Real Estate Institute of Australia, provides a comprehensive national snapshot of the sector using the latest data for the September Quarter 2014.

At $843,994, Sydney’s median house price is the highest among the capitals while Hobart remains the lowest median house price across Australian capital cities at $360,000. This is a significant difference of $486,994.

REIA CEO Amanda Lynch said, “The release of these figures is very timely given the recent developments last week that saw analysts shift from expectations of a rate rise in 2015 to the possibility of a rate cut.”

“The prospect of not only continuing low interest rates throughout 2015 but also the possibility of a cut should stimulate much activity in the housing market with this report by Bendigo Bank and REIA showing the cooling market provides an ideal time for investors and first home buyers alike.”

“With moderating prices in all capital cities except Sydney and Melbourne, first home buyers in particular should feel confident in being able to enter the market.”

REIA’s Housing Affordability Report, which we released last week, shows first home buyers dropped to a historic low and made up just 12% of the owner-occupier market in the September quarter.

“The combination of a moderating market and low interest rates will hopefully reverse this trend and the re-emergence of first home buyers will be good news for everyone.”

Fast Facts: September quarter 2014

Quarterly Australian weighted average median house price is $620,901
Quarterly Australian weighted average median other dwellings price is $497,239

Median house prices up:
Sydney 3.8% to $843,994

Median house prices down:
Brisbane 1.0% to $465,500
Adelaide 1.8% to $412,500
Perth 1.8% to $535,000
Hobart 5.3% to $360,000
Canberra 1.9% to $525,000
Darwin 1.7% to $610,000

Median house prices unchanged:
Melbourne at $649,000

For a media copy of the report, please email zoe.davies@reia.com.au

Cooling housing market has a silver lining