Based on daily movements in the aggregated RP Data-Rismark Home Value Index (updated daily at http://www.rpdata.com, http://www.asx.com.au, Bloomberg & Reuters) covering Australia’s five key capital cities, Australia’s housing market reached a recent trough on May 30 of this year after values peaked 1.5 years earlier and 7.7% higher. Since the recent low point in the index, dwelling values across the five city aggregate index have gained 2.5%.
Each capital city reached their respective market peak and eventual trough at different times. Perth’s housing market peaked the earliest (May 9, 2010), followed by Brisbane (May 13, 2010) with the other major capitals finding a high point in October or November 2010.
Additionally, the recovery time frame and duration of the correction varies from city to city. The cities where housing markets were comparatively weaker recorded an earlier peak, while the stronger markets (Sydney and Melbourne) saw values peak later in the cycle. The combined Brisbane/Gold Coast market saw values consolidate over a two year period, with values falling by 12.9%. Adelaide’s housing market correction ran for 1.8 years, with values down 8.4%. In Melbourne, values fell by 11.1% over 1.6 years, Perth recorded a 12.5% correction over 1.5 years and Sydney’s housing market saw the smallest correction, with values down 6.8% over a 1.5 year period.