Over the first seventeen days of August we have seen dwelling values across the combined capital cities rise by 0.3%. The growth trend over the month has been modest (as can be seen from the graph below), however, unless we see deterioration in the daily readings over the next fourteen days we are likely to see another positive month of value change in August.
Similar to the June RP Data-Rismark Home Value Index results, it looks like the August value improvements are relatively broad based. Across the major capital cities the only city to record a fall in values over the month to date has been Perth where values are down -0.9%.
If the trend continues we are likely to see a third month running where dwelling values have improved across the combined capital city markets, a pretty good indication that market conditions have moved through the bottom of the cycle.
Although home values have continued to increase over the month it is important to note that the rate of growth has slowed. Values rose by 1.0% in June, 0.6% in July and the August result looks set to be inline or slightly lower than the growth in values in July. With no interest rate cuts over recent months it will be interesting to see whether the slowing continues or momentum builds as we enter the Spring Selling Season.