House prices stumble Down Under

Home values across most major cities in Australia are continuing to depreciate according a recent home value index supplied by RP Data-Rismark. During last month the value of properties within the Australian real estate residential sector dropped by 1.4 per cent and by more than 5.2 per cent during the twelve months ending in May. Melbourne real estate values saw the biggest decline at 2.7 per cent and Adelaide was the only region to see residential property values lift – a rise of 1.2 per cent. Researchers suggest that while apartment values remain relatively steady it is the detached dwellings sector of the market that is witnessing a decline in value. Residential properties at the upper end of the price scale are being hit harder than those at the lower end. Economists agree that while interest rate cuts are having little effect on the level of activity within the markets on the whole housing affordability is beginning to improve. Australian property experts suggest buyer confidence is lower than expected considering the strength of the general economy.