RP Data has revealed figures suggesting that the fall in house prices seen during April were nothing but a ‘blip’. Strong clearance rates and improvements in housing finance demand have convinced the analytics firm that the fall is a temporary issue and that prices are set to continue to improve.
The April RP Data-Rismark home value index showed a drop in value for most capital cities apart from Adelaide, but director of research Tim Lawless said this is likely to be nothing more than a stumbling block on an upward trend. His opinion is based on the 2.8 per cent rise the market for capital city dwellings has enjoyed in the first quarter.
Mr Lawless suggested that when the data from April was considered alongside the auction clearance rates, private treaty indicators and some improvement in housing finance demand, it was likely the dip was only a brief blip. He added that it would be unrealistic to expect the growth rates experienced during the first three months of the year to continue into April.
A steadier and more realistic growth rate is a preferable way for the Australian housing market to gain strength over the coming months, and buyers and property investors should bear in mind that the first quarter is often the strongest.
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