Sunday 23 December 2012

Property down 1.8 per cent

THE property market picked up this year - that is to say, your properties lost less value than last year.

Australia's median house price fell about 0.8 per cent in the year to November, according to property research group Residex.

House prices in Melbourne were down 1.82 per cent while they slumped 4.4 per cent in country Victoria.

Flats and apartments fared better, with the median price rising about 0.8 per cent nationally.

Unit prices were down 1.14 per cent in Melbourne and close to 1 per cent in country Victoria.

A string of interest rate cuts lifted the state's clearance rate to 61 per cent this year, according to the Real Estate Institute of Victoria.

That's higher than last year when barely half of all auctions were generating a sale under the hammer.

But it is well below the 10-year average of 73 per cent and outside the 65-75 per cent range regarded as "balanced''.

An ANZ report this month said investment in new property was at "recessionary levels''.

Housing investment has fallen to 4.67 per cent of Australia's gross domestic product - the lowest level since 2001.

Residex's John Edwards says markets have not kept pace with inflation.

"The majority of cities have produced negative real rates of growth, after taking inflation into account,'' he said.

"The real growth was -2.8 per cent in housing while for units it was -1.23 per cent.''

For the original post visit: http://www.perthnow.com.au/realestate/investing/property-down-18-per-cent/story-fndcyrtb-1226542575103

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