Home values in Australia’s capital cities have surged by 1.4 per cent in March, according to RP Data.
The surprisingly resilient growth follows 1.7 per cent growth in February and 1.1 per cent in January.
RP Data’s March Rismark Hedonic Home Value Index found Australian dwelling values rose by 4.2 per cent in the first three months of 2010.
Rismark chief executive officer Christopher Joye said the housing recovery had remained resilient in the face of sustained interest rate hikes.
“The lively capital growth observed in the major cities runs against the grain of relatively anemic housing finance flows,” Mr Joye said.
“This implies that underlying demand and supply side fundamentals are driving Australia’s housing rebound, as opposed to simply credit.”
RP Data’s director of research Tim Lawless agreed and said that he expected capital growth rates to cool in 2010 as the cost of mortgage finance is normalised by the RBA.
“Over the longer term home values should be expected to track disposable incomes,” Mr Lawless said