January set for house price rise after December fall...RBNZ follows RBA in holding rate steady...
Sydney and Melbourne house prices on the mend
Figures published by Corelogic RP Data this morning are set to show a recovery in Sydney’s house prices in January, with a 0.5% increase in Corelogic’s daily index for the city, whilst Melbourne prices increased by 2% over the month.
Corelogic note the rise will help to offset what was a 2.3% fall in Sydney house prices over the December Quarter, whilst Melbourne’s 2% growth rate will help bring its quarterly figures back into positive territory.
Whilst the housing markets for these two cities are set to show gains, Corelogic warns that figures for Australia’s other capital cities are more sedate, “with the potential for further falls” over January. Corelogic’s head of research Tim Lawless concluded that “despite the higher index readings across the largest cites, it’s likely that housing market conditions will track lower than what we saw over 2015.”
Corelogic’s January Home Value Index will be published at 10am – see tomorrow’s Morning Briefing for more
RBNZ holds rate steady
New Zealand’s Reserve Bank has followed Australia in holding interest rates steady. The RBNZ justified its decision to keep rates at 2.5% as a result of “uncertainty about the strength of the global economy has increased due to weaker growth in the developing world and concerns about China and other emerging markets. Prices for a range of commodities, particularly oil, remain weak. Financial market volatility has increased, and global inflation remains low.”
The RBNZ also noted that rising house prices in Auckland – which have dwarfed even rises in Sydney – “remains a financial stability risk” although it conceded “the rate of increase may be moderating”. After taking measures to raise deposit requirements specifically for the Auckland metropolitan area, it seems buyers are looking elsewhere, with house prices building in other regions.
Further easing may be necessary, the RBNZ concluded, in order to raise inflation to its target range. It identified risks to global growth, “particularly around China, global financial market conditions, dairy prices, net immigration, and pressures in the housing market.”
Figures published by Corelogic RP Data this morning are set to show a recovery in Sydney’s house prices in January, with a 0.5% increase in Corelogic’s daily index for the city, whilst Melbourne prices increased by 2% over the month.
Corelogic note the rise will help to offset what was a 2.3% fall in Sydney house prices over the December Quarter, whilst Melbourne’s 2% growth rate will help bring its quarterly figures back into positive territory.
Whilst the housing markets for these two cities are set to show gains, Corelogic warns that figures for Australia’s other capital cities are more sedate, “with the potential for further falls” over January. Corelogic’s head of research Tim Lawless concluded that “despite the higher index readings across the largest cites, it’s likely that housing market conditions will track lower than what we saw over 2015.”
Corelogic’s January Home Value Index will be published at 10am – see tomorrow’s Morning Briefing for more
RBNZ holds rate steady
New Zealand’s Reserve Bank has followed Australia in holding interest rates steady. The RBNZ justified its decision to keep rates at 2.5% as a result of “uncertainty about the strength of the global economy has increased due to weaker growth in the developing world and concerns about China and other emerging markets. Prices for a range of commodities, particularly oil, remain weak. Financial market volatility has increased, and global inflation remains low.”
The RBNZ also noted that rising house prices in Auckland – which have dwarfed even rises in Sydney – “remains a financial stability risk” although it conceded “the rate of increase may be moderating”. After taking measures to raise deposit requirements specifically for the Auckland metropolitan area, it seems buyers are looking elsewhere, with house prices building in other regions.
Further easing may be necessary, the RBNZ concluded, in order to raise inflation to its target range. It identified risks to global growth, “particularly around China, global financial market conditions, dairy prices, net immigration, and pressures in the housing market.”
