Australia’s house prices continue to tread water, despite robust household income growth.
According to RP data’s latest Home Value Index, national house prices have climbed just 0.8 per cent in the year to February 2011.
Over the last quarter, Australia’s capital city median house price dropped from a peak of $473,000 to $459,000.
And the median in the rest of state markets is markedly lower at just $323,000.
RP Data’s research analyst Cameron Kusher attributes the slight drop in house prices could be attributed to a near double interest rate hike in November 2010 and the spate of natural disasters.
“These issues have conspired to make the last three months difficult ones for Australia’s housing market,” he said.
“In the capital cities, home values are down 1.3 per cent in seasonally adjusted terms. The rest of state areas are also off 0.9 per cent.”
But while the weakness has been evidenced right across the nation, Mr Kusher said it has been especially acute in Darwin.
“Darwin’s housing market looks to have fallen back to the pack. In the two years to December 2010, Darwin dwelling prices had expanded by a sprightly 20.5 per cent ¬ this growth now seems to have disappeared.”