Rate cut helps property market rebound
The Reserve Bank of Australia's decision to cut the official cash rate is paying dividends, with capital city values rising for the first time in 12 months.
According to the latest research from RP Data, in seasonally-adjusted terms, Australia's capital city home values rose by 0.1 per cent in November – the first increase since December 2010.
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Regional house values recorded a 0.3 per cent rise in November, which was also the biggest increase since December 2010.
Rismark's director Christopher Joye said for Australia's capital city and regional markets, this was the single best monthly result since December 2010, and augurs well for housing activity during the first quarter of 2012.
"The best proxy for housing demand—the number of new home loans approved for purchasing established properties—has risen robustly every month since its nadir in March," he said.
Mr Joye said the November result has helped improve the Australian housing market's year-to-date performance.
"The November result is consistent with our forecasts that Australia's housing market will respond much more quickly to the RBA's November and December cuts than many analysts expect," he said.
