An Australian Property Monitors (APM) report released on 21st January 2010, states that Melbourne's prices jumped 18.5% over the 12 months of 2009 and well past the $500,000 mark for the first time.
The report further states that the medium to long term outlook for property prices remains strong as the population grows and demand for houses continues to outstrip supply.
Predictions of substantial house price falls at the beginning of 2009 in the following 12 months by most forecasters have been proven wrong according to Christopher Joye, managing director of Rismark International.
In the recent RP Data-Rismark National Home Value Index, which is published by the RBA in the ‘Statement on Monetary Policy’, “Melbourne has been Australia’s best performing capital city outside of Darwin, generating exceptional capital gains of +17% over 2009”.
RP Data’s December 2009 Media Release states, “The most important story of 2009 has been the extraordinary recovery in the Melbourne and Sydney housing markets. In the three months to the end of November, home values in Melbourne and Sydney have outperformed most other capitals rising by 4.5% and 3.2% respectively.”
Mr. Joye believes that most analysts failure to even get close to accurately forecasting Australia’s housing market’s likely path following the GFC and recovery since, simply illustrates the lack of understanding in the sector.
Tim Lawless, Rpdata.com Research Director suggests that the results achieved over 2009 bring into focus that the Australian market may be less sensitive to interest rate rises and the removal of Government stimulus.
“First home buyers have been trending down since peaking in May ’09 and the gap is being filled by up-graders and investors who are much less sensitive to rate rises and the level of stimulus.”
“We expect this trend to continue in 2010.”