Despite home values falling overall in 2012, the rate of decline has eased from the year before, new data show.
According to RP Data figures, capital city dwelling values fell by 0.3 per cent over the month of December, which recorded an aggregate decline of 0.4 per cent over the 2012 calendar year.
However, according to RP Data senior research analyst Cameron Kusher, the results are pleasing when compared to the 3.8 per cent drop in home value witnessed in 2011.
“Capital city home values remain 5.7 per cent lower than their historic highs of November 2010, however, dwelling values are up 1.8 per cent from their low of late May 2012,” he said.
“It is important to note that despite the fact that standard variable mortgage rates have fallen by an average of 85 basis points over the past year and by 135 basis points since October of last year, the housing market has still been unable to record growth in values over the year.
“Home values remain below their historic highs across each capital city and have increased at an average annual rate of just 1.9 per cent over the past five years; it is clear that the previous strong value growth conditions to which many home owners became accustomed of recent years are well and truly behind us.
“Home values in Brisbane, Perth and Hobart remain below where they were five years ago, whereas the other mainland cities have all recorded significantly lower rates of growth in home values over the past five years than they did over the preceding five year period,” Mr Kusher said.