Property values fell in April, partly reversing the growth seen over the strong first quarter of the year, according to RP Data.
Based on the April RP Data-Rismark Home Value Index, capital city dwelling values recorded their first month-on-month decline since last December, posting a -0.5 per cent fall across the combined capital cities index.
However, RP Data’s director of research, Tim Lawless, believes the April results represent more of a stumble along the path to recovery than a sign for concern.
“When viewed in line with other metrics such as auction clearance rates, private treaty indicators and some improvement in housing finance demand, it is likely that the negative April result will be a blip along the path to recovery," he said.
“We weren’t expecting that the high rate of growth evidenced over the first three months of the year would be sustained into April. A more measured pace of growth is a much more realistic outcome for the Australian housing market, especially considering that the first quarter is typically the strongest for value growth.”
Softer capital city dwelling values were recorded across every capital city apart from Adelaide where dwelling values were up 2.8 per cent over the month and in Darwin where values rose by 0.2 per cent.
Across the major cities, Sydney values were down -0.4 per cent over the month, Melbourne values saw a -0.5 per cent drop, Brisbane values were down -0.7 per cent. Perth values recorded a -2.5 per cent fall.
“Overall, the housing market is in much better shape than it was a year ago where values were still falling and market sentiment was very low,” Mr Lawless said.
“Despite the weak April results, we are in a market where auction clearance rates are consistently higher than 60 per cent nationally and around the 70 per cent mark in Melbourne and Sydney. Vendors aren’t discounting their asking prices as much as they were a year ago, providing further evidence that buyers and sellers are starting to find some even ground.”