Sydney home values rebound to a new historic high level.
Sydney home values have increased by 5.6 per cent over the past 12 months and have now eclipsed their previous high point. House values have increased by 6.3 per cent over the year and unit values are 2.4 per cent higher. In June 2012, Sydney house values had fallen by 2.0 per cent over the previous 12 month period and unit values were 2.7 per cent lower. Local dwelling values in Sydney recently eclipsed their previous peaks and are now 1.2 per cent higher than the previous record high.
Sydney home values recorded a peak in early 2004 following exceptional growth from 2001. From 2004 until 2009, Sydney saw virtually no growth in home values, with many parts of the city recording actual declines. In fact, when adjusted for inflation, Sydney home values still remain below their December 2003 peak. Sydney home values have recorded average annual growth of 3.8 per cent over the past five years, which is a significant improvement on the 2.5 per cent average annual growth over the past decade. Over the past ten years, Sydney has recorded the lowest average annual growth in home values of all capital cities. Transaction volumes are starting to ramp-up across the city.
Over the three months to May 2013, it was estimated that there were 15,864 house sales and 10,534 unit sales. In comparison to the same three month period in 2012, sales volumes were 30.6 per cent higher this year for houses and 23.6 per cent higher for units. Over the 12 months to May 2013, there were 52,243 houses and 35,618 units sold, which was 7.3 per cent higher and 2.9 per cent lower respectively compared to the same period last year. It is clear that the lower mortgage rate environment is having a positive impact on the Sydney housing market and resulting in not just increasing home values but also a lift in transaction activity. The lift in sales activity has been more significant for houses than it has been for units.
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