House prices stabilise in December 2008 quarter

Government and Reserve Bank measures to safeguard property markets appear to have taken effect, with house prices holding steady in the December 2008 quarter.

According to the Real Estate Institute of Australia and Mortgage Choice Market Facts report released today, four out of eight capital cities recorded an increase or no change in median house prices over the December 2008 quarter.

This was a marked improvement from the September 2008 quarter, when only one capital city recorded an increase in median house price.

Darwin’s house price grew the most at 1.4%, followed by Sydney and Hobart which both recorded quarterly growth of 0.3%. Canberra’s house priced remained the same.

On average, the national median house price fell 1.3% in the quarter to rest at $442,038.

Commenting on the report, REIA president Noel Dyett said “Market response to the actions of the Reserve Bank and the government has seen falling property prices around the country stabilising in the December quarter 2008, propped up by buyer activity at the lower end of the market.”