In seasonally-adjusted terms, Australia’s capital city home values rose by 0.1 per cent in November, which was the first increase since December 2010. Regional house values recorded a 0.3 per cent (s.a.) rise in November, which was also the biggest increase since December 2010.
Based on around 312,000 sales over the first 11 months of 2011, the market-leading RP Data-Rismark Home Value Index recorded increases in home values across both capital city and regional markets in the month of November following the RBA’s decision to cut interest rates by 0.25 percentage points.
Rismark director, Christopher Joye added, "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. Over 90 per cent of all Australian home loans are fully variable rate, and lenders have passed on most of the 0.50 percentage points worth of RBA rate cuts during the final two months of the year. Borrowers can now get fixed-rate loans for around 5.9 per cent and discounted variable rate loans as low as 6.14 per cent. As Australia’s most interest rate sensitive sector, the housing market will be one of the biggest beneficiaries of the RBA’s munificence alongside consumer spending. We expect to see house prices rising again in 2012."