RP Data: House prices fall for first time in 17 months
Australia’s spate of interest rate rises over the last year appears to have taken its toll on the property market after house prices fell for the first time in 17 months, according to new figures.
The latest RP Data-Rismark Hedonic Home Value Index showed that house price values across the nation’s capital cities fell 0.7 per cent in the June quarter.
It amounts to the largest fall since April 2008, though RP Data’s Tim Lawless claimed the result was not surprising.
"We’ve been seeing the writing on the wall, because we’ve also seen auction clearance rates deteriorating, we’ve seen housing finance commitments falling, suggesting demand in the marketplace has been abating," he told news.com.au.
Interest rate hikes have also affected the decisions of Aussies looking to compare home loans in today’s difficult financing climate. According to the research, all of Australia’s capital cities experienced virtually no growth or a fall in values, with the exception of Adelaide.
RP Data’s figures contrast starkly with yesterday’s (July 29th) analysis from Australian Property Monitors which showed a 2.4 per cent rise in house prices over the quarter. The indexes use different formulas to reach their conclusions.
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