Sellers raise asking prices as market recovers


Sellers raise asking prices as market recovers

Posted on Wednesday, April 03 2013 at 12:06 PM

More data released this week indicates a continued upward direction for the Australian real estate market.

The
SQM Research Weekly
Vendor Sentiment Index
indicates capital city sellers raised asking
prices by 1.3 per cent during the March quarter.

While
the results were up overall, Sydney and Darwin recorded the strongest
improvement for housing reflecting rises of four per cent and 3.9 per cent
respectively.

For
units, the three markets with the strongest increases were Darwin with seven
per cent and Hobart with 4.8 per cent.

Louis
Christopher, managing director at SQM Research, says although the results for
the quarter were strong, the 30-day figures were more subdued.

“Overall the market was confident for the
quarter, however I note that there was a little more caution in the month of
March.”

Christopher says the two strongest performers
have helped drag the total results up.

“Sydney and Darwin are leading the charge.
However if it were not for the strong results in Sydney, it’s most likely the
national average would be recording market weakness for the quarter.”

The results come in the same week as the Reserve
Bank’s announcement to keep the cash rate steady at three per cent.

In a statement released to the media, Reserve
Bank Governor Glenn Stevens indicated there was still room for further easing
if economic conditions weakened.

“The inflation outlook, as assessed at present, would afford
scope to ease policy further, should that be necessary to support demand,” he
says.

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