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1 Apr 2014
Australian house prices may force RBA to hike rates sooner-than-expected
FXStreet (Bali) - House prices in Australia were up 2.3 per cent in March, according to data released by RP Data figures.
According to Rebecca Thistleton from the Australian Financial Review, "Sydney’s median house price was $713,000, followed by Darwin at $575,000 the Melbourne at $555,000. Sydney’s median unit price at the end of March was $552,500."
Thistleton quotes RP Data research director Tim Lawless saying: "If prices continue to rise at this pace, the RBA will be forced to increase interest rates earlier than expected."
“Dwelling values increased by just 2.9 per cent over the first twelve months of the cycle, however, since last June, values are up by close to 13 per cent,” Lawless said.
“Over the long term, I don’t believe such a strong pace of growth can be sustained – we expect housing market conditions to cool down as the year progresses.”
Meanwhile, the AFR article written by Thistleton also mentions Rismark managing director Ben Skilbeck, who said seasonality may have had an impact on March results.
Skilbeck said “March and September have a history of being comparatively strong seasonal months for dwelling value changes", adding "as such, there should be little surprise that, in the presence of high auction clearance rates and in the absence of any major economic changes, the March month delivered materially stronger performance than the flat February result.”
According to Rebecca Thistleton from the Australian Financial Review, "Sydney’s median house price was $713,000, followed by Darwin at $575,000 the Melbourne at $555,000. Sydney’s median unit price at the end of March was $552,500."
Thistleton quotes RP Data research director Tim Lawless saying: "If prices continue to rise at this pace, the RBA will be forced to increase interest rates earlier than expected."
“Dwelling values increased by just 2.9 per cent over the first twelve months of the cycle, however, since last June, values are up by close to 13 per cent,” Lawless said.
“Over the long term, I don’t believe such a strong pace of growth can be sustained – we expect housing market conditions to cool down as the year progresses.”
Meanwhile, the AFR article written by Thistleton also mentions Rismark managing director Ben Skilbeck, who said seasonality may have had an impact on March results.
Skilbeck said “March and September have a history of being comparatively strong seasonal months for dwelling value changes", adding "as such, there should be little surprise that, in the presence of high auction clearance rates and in the absence of any major economic changes, the March month delivered materially stronger performance than the flat February result.”