House price growth “fizzles out” in australia

"Today’s figures present a weak update for the housing industry,” said HIA Senior Economist, Shane Garrett. “In three of the eight cities surveyed, prices actually dropped in the first three months of this year.”

“These figures confirm our long held position that any recovery that is underway in the housing market is a delicate one,” he added. “The robust price growth we saw at the end of 2012 has petered out and once again the market will have to struggle to regain momentum. Mortgage lenders as well as the Reserve Bank need to step up to the plate in terms of interest rates at this time.”

Across capital cities, in the March 2013 quarter the established house price index (subject to revision by the ABS) rose by 0.2 per cent in Melbourne, 1.2 per cent in Perth, 1.9 per cent in Darwin and 0.2 per cent in Canberra. Prices fell by 0.3 per cent, though, in Brisbane, 0.1 per cent in Adelaide and 0.3 per cent in Hobart. Established house prices in Sydney were unchanged over the March 2013 quarter.

Across capital cities, in the March 2013 quarter the new house price index rose by 1.0 per cent in Sydney, 5.2 per cent in Melbourne, 1.3 per cent in Perth, 0.1 per cent in Hobart, 1.3 per cent in Darwin and 0.1 per cent in Canberra. New home prices fell by 0.6 per cent in Brisbane and by 0.1 per cent in Adelaide.

“Rising house prices, providing they occur at a manageable pace, play a key role in bolstering household confidence. A sustained return to manageable price growth will lead to a multitude of knock-on benefits across the wider economy,” continued Garrett.

“The importance of a strong housing market should not be underestimated.”