According to the January 2013 RP Data-Rismark Home Value Index, home values across Australia's capital cities rose 1.2 per cent in January, taking the annual movement in dwelling values back into the black with a 1.8 per cent increase over the past twelve months.
Since bottoming out in May 2012, dwelling values across the combined capital cities have recovered 3.1 per cent.
The year-on-year results have now moved firmly into positive territory, with capital city dwelling values 1.8 per cent higher over the twelve months ending January 31.
Every capital city, except Melbourne (-0.4 per cent), has recorded an increase in dwelling values over the past twelve months.
The gains in January were mostly focussed within the Brisbane, Sydney and Perth markets where values increased two per cent, 1.8 per cent and 1.7 per cent respectively. Conditions across the Melbourne and Adelaide housing markets remained relatively subdued with dwelling values rising by 0.2 per cent and 0.4 per cent respectively.
According to RP Data's Research Director, Tim Lawless, housing market conditions have started the year on a strong footing:
"These strong January results are likely to have seen some upwards seasonal bias, however the housing market has been on a clear recovery trend since June last year. Capital gains aren't likely to remain this high over the coming months, however we are likely to see the recovery trend continue through 2013," Mr Lawless said.
Additional data is also pointing towards an improvement in the Australian housing market. The average number of days that it takes to sell a property was steadily decreasing prior to the seasonal slowdown in December/January, and the rate of vendor discounting was also on a clear trend of improvement.
According to Mr Lawless, these metrics are a sign that vendors are gradually regaining some leverage in the market.
"The typical capital city house took fifty five days to sell in December last year, a vast improvement from the recent high of 76 days recorded in February last year. Additionally, vendors are now discounting their initial asking prices by an average of 6.6 per cent compared with -7.3 per cent a year ago," continued Mr Lawless.
"With stock levels remaining high, it is likely to remain a buyers' market for some time, however I think we are now seeing some balance return to the negotiation table. Buyers are losing some of their negotiation power and homes are selling faster," concluded Mr Lawless.
For more information about the residential property market in your areas of interest, please feel free to stop by your local Century 21 Real Estate office for expert and clear advice. Additionally, if you would like to speak to a mortgage professional about suitable loan packages, please contact Century 21 Home Loans.