HOUSE prices in Australia’s capital cities leapt 1.4 per cent in September, suggesting that recent rate cuts by the central bank are buoying the market.
The finding in the latest RP Rismark Home Values Index, released on Tuesday 02/10/2012, was the largest monthly increase since March 2010.
On a quarterly basis, house prices in the country’s eight capital cities rose two per cent.
Price gains were strongest in Adelaide at 2.4 per cent, followed by Perth (1.6 per cent), Sydney (1.5 per cent), Melbourne (1.4 per cent) and Brisbane (1.1 per cent).
Hobart, Darwin and Canberra all reported falls – by 0.2 per cent, two per cent and 0.6 per cent respectively.
The result suggests that the weakness in the housing market from in the year has since dissipated.
RP Data research director Tim Lawless said improvements in the market since mid-year were linked to the Reserve Bank of Australia (RBA)’s cash rate cuts in May and June 2012.
The RBA was expected to consider this turnaround at its board meeting on Tuesday 02/10/2012. Economists expect the RBA will deliver borrowers at least one more rate cut before the end of December 2012.