Have we reached the peak in Property Market Values?

The recently released RP Data-Rismark Home Value Index for May shows clear signs that property values have already reached its cut off point, with values for key capital cities dropping to a combined 1.9% for the month of May, the first time the values decreased since May 2013.

Melbourne property values lead all capital cities with a decline of 3.6%, followed by Adelaide at 1.8%, Brisbane by 1.7%, Sydney by 1.1%, Perth at a 0.8% decrease and Hobart rounding up the list with a 0.6% drop. Only Darwin and Canberra posted a growth in value, with 1% and 0.1% respectively.

RP Data research director Tim Lawless believes that these results are too early to determine whether property values are on a downward trend, saying that growth cycles in Australia normally last for two years. He also attributes a possible seasonal resemblance to the trends experienced at the same time last year as a possible factor for the decrease in property values.

Read more about this on the Adviser website.

Author: Dorian Traill

Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.

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