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Mortgage rates driving capital growth
Annual capital city dwelling values have risen by 3.8 per cent over the 2012/2013 financial year, according to the RP Data-Rismark Home Value Index.
Comparably, the 2011/2012 financial year saw a 3.6 per cent fall in values.
RP Data research director Tim Lawless said the capital gains recorded over the financial year highlighted that lower mortgage rates are starting to have a positive impact on the housing market. However, current conditions are far removed from the buoyant conditions experienced in 2009.
Capital city home values are up 3.8 per cent over the past 12 months and have now recovered 4.9 per cent of the 7.4 per cent correction, RP Data said. In comparison, the first 12 months of 2009 saw capital city dwelling values increase by almost 14 per cent.
"At that time, auction clearance rates were at a similar level to now and mortgage rates were lower. However, growth conditions were vastly different," Mr Lawless said.
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